How do weekly vs monthly options affect the volatility of digital currencies?

3 answers

• Ricardo JurcisinMay 01, 2025 · 6 months ago
  Weekly and monthly options can have different effects on the volatility of digital currencies. Weekly options, with their shorter expiration period, tend to attract more speculative traders who are looking for quick profits. This increased speculative activity can lead to higher volatility in the short term. On the other hand, monthly options, with their longer expiration period, may attract more institutional investors who have a longer-term investment horizon. These investors often take a more cautious approach, which can help stabilize the volatility of digital currencies over a longer period of time.
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• SANDRA VINAYANSep 09, 2021 · 4 years ago
  When it comes to the impact of weekly and monthly options on the volatility of digital currencies, it's important to consider the trading volume and liquidity of these options. Weekly options, due to their shorter expiration period, may have lower trading volume and liquidity compared to monthly options. This lower liquidity can result in larger price swings and increased volatility. On the other hand, monthly options, with their longer expiration period, tend to have higher trading volume and liquidity, which can help dampen volatility and provide more stability to digital currencies.
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• Nkit Mbock MbockMar 10, 2022 · 4 years ago
  At BYDFi, we believe that the impact of weekly and monthly options on the volatility of digital currencies can vary depending on market conditions and investor sentiment. While weekly options may introduce more short-term volatility, they also provide opportunities for traders to profit from short-term price movements. On the other hand, monthly options can attract more long-term investors who are looking for stability and are less influenced by short-term price fluctuations. It's important for investors to carefully consider their investment goals and risk tolerance when choosing between weekly and monthly options in order to effectively manage the volatility of digital currencies.
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