How should options be played?
In the previous article, I introduced options to everyone. This article continues to talk about how to use options for trading and risk management. Starting from the simplest four basic operations, I will introduce some core trading strategies.
When trading cryptocurrency options, the key is to predict whether the underlying assets (such as Bitcoin or Ethereum) will rise, fall, or remain stable in the future, and then choose the corresponding 'rights' contract.
The four basic operations of options trading (Single-Leg trading)
There are four basic directions in options trading, known as 'Single-Leg' trading.