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Whenever I hear about Bitcoin I just brush it off as a "fad", and would be of no interest to me as a "delta neutral" options "spread" trader.

I imagine many of you would feel similar.

Anyway, in my reluctance to follow it more closely, I totally missed out on the fact that options on Bitcoin are now traded on the CBOE, a "real" exchange.

So, there are "real" options, with "real" IV's, and "greeks" etc.

I just came across this article which goes further into it in case anyone finds it of interest.

It is a few months old, and not too impressive.

It points out the lack of interest, and volume, in options, as opposed to all of the mass interest in the underlying.

It seems that there would have been more interest.

https://www.bloomberg.com/view/articles/2018-02-28/bitcoin-cryptocurrency-derivatives-have-slow-uneventful-launch

This is a list of IV's

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BTC does not have a good option market. I think only one or two anonymous exchange are trading their option chains at a very expensive rate since BTC or XBT is very volatile. Their liquidity is also very bad.  I personally just do BTC futures (XBT) on bitmex, some alt coins trading on binance and some BTC/USD trading on Gdax. This is my high-risk gambling portfolio. Basically, I see BTC as the stock for the whole blockchain market. The risk and rewards are both very high. However, this market now is a highly manipulated market by some whales. Below is what happened yesterday. A quick pump and dump in 1 hour. Both long/short trades with high leverages got liquidated.     

btc.jpg

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21 hours ago, EmilyF2 said:

BTC does not have a good option market. I think only one or two anonymous exchange are trading their option chains at a very expensive rate since BTC or XBT is very volatile. Their liquidity is also very bad.  I personally just do BTC futures (XBT) on bitmex, some alt coins trading on binance and some BTC/USD trading on Gdax. This is my high-risk gambling portfolio. Basically, I see BTC as the stock for the whole blockchain market. The risk and rewards are both very high. However, this market now is a highly manipulated market by some whales. Below is what happened yesterday. A quick pump and dump in 1 hour. Both long/short trades with high leverages got liquidated.     

btc.jpg

Yes..I did mention that the interest in this was not very impressive.

I just wanted to give it a fair look, and tried to pull up a chart, and options chains, on IB TWS, where I trade, but it requires another special data subscription.

I wanted to see all of the options, and if there was anything "sensible" that could be done in this arena, but I don't fell like paying for another data subscription to something that , it appears, has no liquidity, and would probably wind up being a false start for me.

It's too bad because, if it did have decent liquidity, it could be a very interesting thing to pursue.

And, as for just day trading, directionally, the pump and dump, that you highlighted here, just turns me right off to it.

There way too many great opportunities in Crude, Gold, Soybeans, etc. who all have excellent liquidity.

Unlike stocks, during "non earnings" periods, which is 75% of the year, the front expiration, in most commodities, has a higher IV than the following ones.

So, that is one potential edge that stocks do not have most of the time.

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