With ether's spot market comatose, sophisticated traders look at options for money-making opportunities. reports godbole17
The ether spot market lull has traders focusing on derivatives, with some finding options cheaper in this low implied volatility environment.
In other words, options, both call and put, are cheap. Implied volatility is one of the critical factors determining the prices of options, which are derivative contracts that give the purchaser the right but not the obligation to buy or sell an underlying asset at a predetermined price on or before a specific date. A call option gives the right to buy, while a put offers the right to sell.
While spot and futures markets allow traders to take directional bets, options open an additional dimension of volatility trading. However, it's not without risks. For example, the implied volatility can stay cheap for a prolonged period before bouncing to the mean, and options lose money as the time for expiration nears. It's called theta decay in options parlance.
Griffin Ardern, a volatility trader at crypto asset management firm Blofin, said,"the whole of April is a relatively good time to bet on volatility [with calls and puts], but right now, it's preferable to use a combination of call options to go long on volatility. That's because puts appear relatively overpriced."
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