How can investors effectively use 0dte options to hedge their cryptocurrency portfolios?

3 answers

• Kaustuv DevNov 02, 2023 · 2 years ago
  One effective strategy for investors to use 0dte options to hedge their cryptocurrency portfolios is to buy put options. By purchasing put options, investors can protect their portfolios from potential downside risks. If the price of the cryptocurrency drops, the put options will increase in value, offsetting the losses in the portfolio. This strategy allows investors to limit their potential losses while still participating in the upside potential of the cryptocurrency market.
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• Cecile MongetMar 27, 2021 · 5 years ago
  Another strategy is to sell call options. By selling call options, investors can generate income from the premiums received. If the price of the cryptocurrency remains below the strike price of the call options, the options will expire worthless and investors can keep the premiums. This strategy can help offset potential losses in the portfolio and provide additional income.
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• Nandhana R SJan 19, 2022 · 4 years ago
  At BYDFi, we recommend using 0dte options as a short-term hedging tool. These options have a very short time to expiration, allowing investors to quickly adjust their hedges based on market conditions. By regularly monitoring the market and adjusting their options positions, investors can effectively manage the risk in their cryptocurrency portfolios.
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