What are the potential risks and rewards of implementing strangle option trades in the cryptocurrency market?

1 answers

• Cannon SommerJul 06, 2025 · 15 days ago
  Strangle option trades in the cryptocurrency market can be both risky and rewarding. This strategy allows traders to potentially profit from significant price movements in either direction. By buying both a call option and a put option, traders can benefit from price volatility regardless of the price movement. However, there are risks involved. If the price of the cryptocurrency remains relatively stable, both options may expire worthless, resulting in a loss. Additionally, the cost of purchasing both options can be expensive, especially in a volatile market. Traders should carefully evaluate the potential risks and rewards before implementing strangle option trades in the cryptocurrency market.
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