Questions tagged [options]

ShintoBlessed Fri Sep 13 2024 | 6 answers 1378

Excuse me, I'm curious about the settlement process for Deribit options. Specifically, are these options cash settled or do they involve the actual delivery of the underlying asset? I'm trying to understand the mechanics behind trading these derivatives and how the settlement process impacts traders' positions and risk management strategies. Could you please clarify this point for me?

Raffaele Thu Sep 12 2024 | 6 answers 809

Should you really be considering buying options when THETA is high? It's a question that many investors grapple with, as theta represents the time decay of an option's value. When theta is high, it means that the option's value is decaying rapidly as time passes. This can be a risky move, as the option's value may decrease significantly before expiration. However, there may be some strategies that can mitigate this risk, such as buying options with longer expiration dates or pairing them with other financial instruments. Ultimately, the decision to buy options when theta is high depends on your individual investment goals and risk tolerance. So, are you sure you're ready to take on this risk?

Chloe_jackson_athlete Thu Sep 12 2024 | 6 answers 1441

Could you explain to me, in simple terms, what THETA decay is in the context of trading? I've heard it mentioned a few times but I'm still a bit unclear on the concept. Is it related to the time value of options or something else entirely? How does it impact traders' decisions and strategies? And is there a way to mitigate its effects or take advantage of it? I'd appreciate any insight you can provide.

ThunderBreezeHarmony Tue Sep 10 2024 | 6 answers 1532

Excuse me, could you please clarify when Bitcoin options typically expire? I'm trying to get a better understanding of the market dynamics and want to ensure that I'm prepared for any potential changes or adjustments that may arise from these expirations. Are there specific dates or intervals that are commonly associated with Bitcoin option expirations, or does it vary depending on the exchange or trading platform?

Carlo Tue Sep 10 2024 | 6 answers 1205

I'm curious about the type of options offered by Deribit. Specifically, I'd like to know if the options traded on their platform are of the American style or the European style. Can you please elaborate on this for me? Understanding the differences between these two types of options is crucial in making informed decisions when trading on Deribit. So, I'm hoping you can provide some clarity on this matter.