3 Strategies to Combat Crypto Market Volatility with Options Trading

1. Sell Calls to enhance earnings

You will receive ~$3.00 from the Instant Premium up front and its yours to keep. If the price of ETH falls to $220, the Instant Premium would offset some of the loss. However, if the price of ETH rises to $300, the Instant Premium would boost your profit beyond $50.

The key point is that the Instant Premium is yours to keep regardless. You can treat it as income or use it to buy protection for the portfolio. The next example will deal with protection.

2. Buy Puts to protect your assets

Put options are used to protect positions or to make speculative bets. When you buy a put, you profit when the crypto asset drops in value. You will have the right to sell a crypto asset at the strike price on the expiry date. This is an incredibly powerful tool.For example: Buy a 1 ETH/USD put option with a strike price of $200 for 14 days

3. Collar (Sell Call + Buy Put) for low cost hedging


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