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How do crypto options contracts affect the market?Hi Friends Today we will explain the option contracts affect on crypto and other markets. First lets see whats an option contract? Options are derivative contracts that entitle the purchaser to buy or sell the connected asset at a predetermined price before the contract expires. There are two types of options , call and put. The right to buy is known as a ‘call’ option, whereas the right to sell the underlying asset is called a ‘put’ option. Every options contract comes with a specified expiry date which is the last date for settling the contract. The price at which the options contract is settled is called the strike price . This is the price at which the options contract owner is allowed to buy/sell the underlying cryptocurrency. The price at which an options contract is bought is called the premium . Now, when would you buy a cryptocurrency? Obviously when it is trading at a price that is lower than it should be,right? This means that you find it to be undervalued and you expect its price to rise in the future so you can sell higher and make money. But what if the crypto price fell instead? Wouldn’t it be nice if somebody would still buy the cryptocurrency from you at a higher price? For that you would require selling rights of the cryptocurrency and you will buy a put option. Now on the flip side when would you sell a cryptocurrency? Of course, when you think that it is trading at a price higher than it should be. This means that you find it to be overvalued and expect it to fall from here. But what if the price of the cryptocurrency rose instead? You would then want to add more crypto at a lower price and sit on assets that are valued higher than your purchase price. For this you would need buying rights or a call option. Since options allow traders the right to buy/sell assets at a predetermined price they shield them from the volatility of the crypto markets. Moreover the volume of the call or put options in the market signals the direction in which investors expect the markets to move. More put options indicate that investors expect the markets to fall whereas more call options indicate that investors expect the market to rally. Now when the option contracts are near their expiration date, large players try to drive the underlying crypto price into a favourable range depending on the option contracts they have purchased. This is done so that the deal can become profitable. In summary: Buying a Call (Long) = Bullish -----> you think the crypto will be worth more later so you want to lock in todays price to buy later at a profit. Selling a Call (Short) = Bearish -----> you think the crypto will be worth less later so you want to lock in todays price to sell later at a profit. Buying a Put (Short) = Bearish ------> you think the crypto will be worth less later so you want to lock in todays price to sell later at a profit. Selling a Put (Long) = Bullish --------> you think the crypto will be worth more later so you want to lock in todays price to buy later at a profit. I hope you enjoy this education please share me your opinions in comments. thank you all specially @TradingView team
CRYPTOCAP:BTCEducation
by TraderAmin-KZ
AMD Calls/Puts: Levels to watch this weekAMD TLDR: Calls above 151.84 SL @ 150.16 Scale out 153.29-156.25 Puts below 139.87 SL @ 141.37 Scale out 136.34 -130.53 Mon Jan 03 2022 Currently above its 12 and 26 EMA Today it recaptured the 12 EMA the 12 EMA just crossed over the 26 EMA Currently Above its 20 MA MACD strengthening SO is not too hot: <80 and K% just crossed D% Latest news: Goldman Sachs analyst Toshiya Hari has a price target of 170(updated) Samsung teases the Galaxy S22’s AMD GPU as renders leak: arstechnica.com AMD CEO Teases Rembrandt 6nm APU Ahead of CES 2022 www.tomshardware.com Options chain activity: Mon Jan 03 2022 AMD open/close - $145.14 / $150.24 3.52% Call VOL - 390,469 Put VOL - 168,670 Call VOL% - 69.83% Call Prem % - 76.29% Bullish Prem % - 58.24% Put/Call Ratio - 0.43 AVG 30D PUT VOLUME MON JAN 03 2022 190.6K AVG 30D CALL VOLUME MON JAN 03 2022 374.4K TOTAL OI MON JAN 03 2022 3.5M - Call 1.7M Put 1.8M Highest OI Increase Option Prev day Vol Prev day OI Curr OI Change AMD 2022-1-21 C $125.00 5,163 14,194 18,906 4,712 (33.20%) AMD 2022-1-7 C $150.00 17,449 8,140 11,159 3,019 (37.09%) AMD 2022-1-14 C $160.00 3,581 2,433 4,884 2,451 (100.74%) AMD 2022-1-7 C $144.00 3,442 456 2,731 2,275 (498.90%) AMD 2022-1-7 C $170.00 3,401 4,280 6,521 2,241 (52.36%) Most active chains Chain Bid-Ask Low-High Volume OI AMD 2022-01-07 C $150.00 $3.55-$3.65 $1.72-$4.48 49,396 11,159 AMD 2022-01-07 C $155.00 $1.83-$1.85 $0.82-$2.37 35,928 13,364 AMD 2022-01-07 C $152.50 $2.59-$2.62 $1.20-$3.30 25,857 6,158 AMD 2022-01-07 C $160.00 $0.87-$0.91 $0.42-$1.21 17,579 11,704 AMD 2022-01-21 C $155.00 $4.55-$4.65 $2.93-$5.40 13,710 35,837 AMD 2022-01-07 C $148.00 $4.55-$4.75 $2.31-$5.63 12,984 3,971 AMD 2022-01-21 C $175.00 $0.96-$0.99 $0.64-$1.23 12,244 17,862 AMD 2022-01-21 C $200.00 $0.19-$0.22 $0.15-$0.27 12,161 20,252 AMD 2022-01-07 P $145.00 $1.29-$1.33 $1.15-$3.18 12,051 5,219 AMD 2022-03-18 C $135.00 $22.20-$22.70 $19.45-$23.45 10,140 2,422 AMD 2022-01-07 C $157.50 $1.24-$1.30 $0.58-$1.70 9,205 4,431 AMD 2022-01-07 C $149.00 $4.05-$4.15 $2.01-$5.05 9,034 2,194 AMD 2022-01-21 C $165.00 $2.09-$2.15 $1.32-$2.56 9,013 23,327 AMD 2022-01-21 C $150.00 $6.60-$6.70 $4.40-$7.60 8,930 46,924 AMD 2022-01-07 P $150.00 $3.25-$3.40 $2.88-$6.10 8,795 3,513 Biggest option trades Ticker Side Strike C/P Expiry Bid-Ask- Spot Size Prem OI Vol AMD BUY 135 call 2022-03-18 $23.25 - $23.50, $23.45 10,000 $23.5M 2.4K 10K AMD BUY 170 put 2022-03-18 $26.30 - $26.45, $26.40 468 $1.2M 913 503 AMD BUY 180 put 2022-02-18 $34.20 - $35.20, $34.76 325 $1.1M 701 325 AMD SELL 175 put 2022-02-18 $30.40 - $30.60, $30.46 325 $990K 1.6K 325 AMD SELL 175 call 2022-01-21 $1.06 - $1.09, $1.06 8,558 $907K 17.9K 10.6k
NASDAQ:AMDLong
by OccamsPhazer
DKNG Neckline BreakDescription DKNG appears to have made a break in the neckline as well as a back test, and I will be entering a starter Long Put position. For the larger time frame, refer to the idea I published here: Technical Indicators: Break in the neckline Death Cross on 29OCT Neckline rejection today Good volume on the breakout Using Long Puts Long Put Levels on Chart SL is set as a break and hold above the ascending neckline. Our eventual price target, as measured by the height of the "head", has us retracing the entire move that was made in 2020. For an intermediate target, we will go with the support set in August of 20. *Stops based off underlying stock price, not mark to market loss The Trade BUY 11/26 42P R/R & Break-evens vary on fill. Manage Risk Only invest what you are willing to lose
NASDAQ:DKNGShort
by BarnardR
PUTS ON LOCK for #BABASo as we have seen this week with the delisthing of DIDI i would encourage any trader looking to jump into Chinese stocks to proceed with caution or tread water very carefully as this seems to be exactly what Winnie the XI wants at this point the best plays we can do to make money on CCP plays is PUTS or at least for me that is how i will be proceeding i know it's hard to resist trying to time the bottom of a play but no one likes being a bag holder or get cut by a falling knife either.
NYSE:BABAShort
by Stock_Hustle21
12
TWTR Weekly Options PlayDescription TWTR remains in extended downtrend that began in FEB of this year. Began broadening formation in August that ended in a breakout to the downside of both the broadening formation and the major trendline that began in MAR of 20' Long Put Levels on Chart SL on a daily close over the lower trendline in the broadening formation. This can happen and a short is still valid, but due to the nature of options this position will be a close-out and search for new entry. *Stops based off underlying stock price, not mark to market loss The Trade BUY 11/12 53P R/R & Breakevens vary on fill. Manage Risk Only invest what you are willing to lose
NYSE:TWTRShort
by BarnardR
HEAR - repeated pattern in the chartsSo i legit stubbled on this one i have done no research or dug into it but i noticed something that right away caught my attention first i was on Unusual Whales FLOW page and i noticed 309 THOUSAND dollars on 2 option trades one being an Opening Position trade and smaller secondary one ( go check it out if you have whales ) one was placed same day mins before the market closed the smaller one and the larger one was for 274K. Now after seeing that and pulling up the chart i right away noticed the pattern it is now is repeated ( a large spike in price action followed by consolidation before a dip in price ) the most recent time taking the price from 14 to 4. if you go back further in the chart you will see another example of this as well. I'll be watching the flow closely to see if i enter a PUT option to enjoy some of that run down as they seem to take time so maybe a Dec 17th experation @ the $22 strike seems to be interesting lol.
NASDAQ:TBCHShort
by Stock_Hustle21
Potential Head and Shoulders Put Options PlayI originally entered this at the 88.6% Retrace with the thought that it could be a bullish bat with divergence and while it did pump 32 percent from the PCZ it did not come close to my normal Bat target yet. But while holding my position on this stock i noticed that the price action actually looked a little like a Head and Shoulders so i decided to take profit and buy some puts. So the next step for us after entering these puts would be to wait and see if the macd crosses bearish again and invalidates our bullish divergence then we may see lower lows to fib extensions like the 1.618. I would not recommend shorting this stock as that is dangerous but instead buying some puts that are a couple months from expiration would be the safer route.
NASDAQ:DADAShort
by RizeSenpai
Prepared for S&P500 correction with Buying PUT optionI've closed every other position, staying in cash and playing for SPX correction because: 1/ SP500 RSI falling down 2/ Strong trendline broken 3/ Selling Volume increased My strategy is simple: BUY SPY Jun30' 415 PUT for 3.85db, because VIX is realive low SIZING: only a little of my CAP is used for this binary play. Stop/my risk management : Closing immediately if daily candle is closing ABOVE the box, max loss in my calculations in this case could be 50% of position. Take profit strategy: selling about ~38cr (x10). Of course I'll not wait until expiry...! If you liked this article, check my other ideas. Anyway: HIT THE LIKE BUTTON BELOW , and for fresh option ideas FOLLOW ME( @mrAnonymCrypto ) on tradingview !
CME_MINI:ES1!Short
by TanukiTrade
2
JNJ- POSSIBLE PUT OPTIONS - MAY 21ST 0.84 CONTRACTS $150All, In semi recent news it's very possible JNJ loses the COVID contracts or at least long enough to take a solid tumble. IF it breaks into the red zone it should trigger a loss of a high and break trend downwards again to $145-$132 level. As always wait for conformation of breaking under first level and watch options volume/contracts for changes in price and news. JNJ in a prime spot to be shorted. Also you can always cover with calls.
NYSE:JNJShort
by DigitalData
3
True story. My Single put option "2 contract" both down/SPX downWhen i did my idea about the completion of an Elliott wave structure with 5th wave 1.61 Fibs of wave one i decided that i would buy small 2 SPY single Put contracts just satisfy my "bias" and my "emotion" toward my Elliott wave count as a worthy trading strategy. So i bought April 16 2021 + March 31 2021 just before the last price action we got in the past 5 days or so . A prefect timing to say the least to test the market and a perfect timing to buy single Put to say the least. Even though i new stimulus is coming soon and this could be another buy the dip pullback but i did it any way regardless of the huge risk if i actually have invested allot of money or bought allot of contracts. Therefore, when we got the recent pullback i opened my account and guess what i saw. Both of my "Single Put contracts" are down 41 % % 49 % and that's was at the bottom around 3800. Just imagine the situation the market is in ,SPX is down around 3 % and you hold single puts you bought just at the top, and at the very bottom your down more than 40%. Well the only thing i concluded from this "test the market" kind of style trading is at 3800sh i came to the conclusion way before the move of spx higher that this is "Buy the dip" pullback, because there is no way that we are correcting and my puts will go down in value instead going up in value and big investors regardless of their different kinds did not buy insurance what so ever for any possible correction. The only thing i should've down is to buy single Calls to see if they have increased in value or no, i guess the should've increased in value if this was buy the dip pullback because the new where the market is going. I have never tested this strategy before, but from my understanding that some big investors use it with single stocks not with SPY like me or ETFs for that matter before they decide to hold big chunk of it. I hope you can take a way something beneficial to you trading strategies or you have learned little something from my live example of a true story of mine. Wish you all the best.
SP:SPX
by samitrading
4