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Calloptions

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
Party City at PCZ of Bullish SharkWe have a Bunch of MACD Bullish Divergence att the PCZ of a Bullish Shark looking to Square-Up the Range and potentially make a 500% Move to the Upside. As for stops i honestly cant think of an area that would be suitable to put a stop due to the lack of support zones to base the trade off of so what i am going to do is buy some call optionss expiring in tthe next few months around a strike of 2 dollars and just hold them until they either go up or until Mid-December.
PLong
by RizeSenpai
4
SPY ripe for a rebound?SPY bottomed June 17th and then uptrended for exactly two months and reversed on August 16th. In this hourly chart , I show that the downtrend retraced the uptrend to exactly the Fibonacci level 0.5 Resistance above is (1) the triple top in June as well as consolidation zones August 22-24 and August 3-5 making the resistance zone 414-419. The Volume Profile POC is at the Fib 0.618 level while the upper high volume node is at the above-described resistance zone. All in all, I see the SPY bouncing off the Fib 0.5 or Fib 0.618 and making its move towards the resistance zone. I will play this with call options expiring September 7th. If resistance breaks, I will close a portion of the calls and let the rest run. If it holds, I will close them all and roll over the profit into out of the money put options expiring September 9th. Please comment, what do you think?
AMEX:SPYLong
by AwesomeAvani
2
#CCJ is setting up for a bounce to the top sideAs you can all see from the daily chart CCJ pulled back on the Fib levels to that .50 area we wicked and are now potentially heading back up to potentially make new highs, me personally i would of much rather liked a pull back to .786 area before we got to see a new run to the top but either way i'm ready, looking at the options chain flow the 35 call for May 20 expiry looks to be primed as well as 34 and 32 call has a ton of oi on them as well waiting for numbers to update on the volume from yesterday to see how much is rolling into the oi or if we get a reduction in the oi levels we know people may be rolling out of those trades either way we should get an opportunity to make some nice gains off this play.
NYSE:CCJLong
by Stock_Hustle21
#ZIM signaling a potential leg up #ZIM over the last 3 days is clearly showing on the VP that people are buying what they see as a potential leg up area due to the POC being shown at the top of the last three trading days price action, looking at other indicators for sense of direction we see the 8ma making a move crossed over the 21 ema signaling a bullish sentiment on the daily chart which potentially means to us days of possible green days to the top side, MACD is also signaling bullish or buying period and an RSI above 50. Further analyzing this ticker looking at the options flow there was significant buying volume in the 70, 65, calls and 62 sold puts as well as some significant amount going into the 75 sold calls indicating in all ways some room to the top side. If you have a flow tool or software like Unusual Whales, you can also see the 65 call being the one with the most bullish sentiment of all for the May 20th expiration please just consider the other factors freight is currently extremely expensive, fuel cost are still going up, and supply chain issues still wildly common in most ports in us and around the world are still seeing long delays so all factors included i feel we may see us go up to retest previous highs not ATH but mid 70's seems capable which if we do would potentially be the formation for a massive head and shoulders best of luck to all who play it.
NYSE:ZIMLong
by Stock_Hustle21