Master Bitcoin Crash Protection: A $65 Billion CIO's Affordable Options Strategy Revealed!
Business Insider3 weeks ago
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Master Bitcoin Crash Protection: A $65 Billion CIO's Affordable Options Strategy Revealed!

Education
bitcoin
optionsstrategy
investmentprotection
marketvolatility
cressetcapital
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Summary:

  • Bitcoin option collar provides downside protection at minimal cost.

  • Jack Ablin, CIO of Cresset Capital, shares insights on this strategy.

  • This strategy involves buying a put option and selling a call option.

  • A cost-effective hedge against market volatility.

  • Essential for traders wanting to protect their investments.

Concerned about a Bitcoin Crash?

A Bitcoin option collar can provide downside protection at little to no cost. Here’s how you can implement this strategy, according to Cresset Capital CIO Jack Ablin.

A Bitcoin on a businessman's collar

What is a Bitcoin Option Collar?

A collar strategy involves holding a long position in Bitcoin while simultaneously buying a protective put option and selling a call option at a higher strike price. This setup caps your potential upside while providing a safety net against significant losses.

Why Use This Strategy?

  • Cost-effective hedge: By using options, you can protect your investment without incurring significant costs.
  • Market volatility: Given the unpredictable nature of the cryptocurrency market, this strategy can help safeguard your assets.

Steps to Implement the Strategy

  1. Purchase Bitcoin: Start by acquiring Bitcoin at your desired price.
  2. Buy a Put Option: This will give you the right to sell Bitcoin at a predetermined price, providing a safety net.
  3. Sell a Call Option: This allows you to earn premium income, offsetting the cost of the put option.

Conclusion

In a market that can shift rapidly, employing a Bitcoin option collar is an intelligent move to protect your investment with minimal cost. It's essential for traders and investors who want to stay ahead of market fluctuations.

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