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  • Volatility and Correlation: Bitcoin vs Gold, Fiat, and Equity Markets

    By Sacha Ghebali and Olivier MammetFollowing the effects of COVID-19, market volatility has gone up over the past months. After strong market swings at the end of the second week of March, investors and politicians are still facing uncertainty on the repercussions of the health crisis on the economy. How does historical volatility compare across asset classes? Assets taken from crypto, gold, FX and equity markets are analyzed from January to May 2020.Main takeawaysWhilst the historical volatilit… … More

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  • 9 reasons that Bitcoin Options are a unique opportunity for retail investors at the moment.

    This is not investment adviceBitmex bounties and Twitter ‘influencers’ don’t exist in the traditional options markets. This growing open interest combined with directional bias and no circuit breakers leads to massive daily moves that the ‘long vol’ trader can take advantage of with strangles and straddles. Combine this with the free alpha you get Twitter traders with an actual track record of correct predictions and its easy to get started.Bitcoin is the first-ever hard-capped, highly liquid as… … More

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  • The dangers of selling Bitcoin options. Naseem Taleb and ‘Disaster’ Puts.

    The dangers of selling Bitcoin options. Nassim Taleb and ‘Disaster’ Puts.Disclaimer: This is not investment adviceOn March 9th, the Bitcoin price was around $8000. Someone sold me half a put with a $6000 strike, expiring on 27th March for about $94 (see below). 4 days later I sold it in chunks for about $1200.I had been buying these regularly and they often expire worthless. Something I had read from a Reddit AMA with Nassim Taleb stuck in my mind:What he is saying is that OTM( out of the money)… … More

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