$BTC has been steadily declining. For those of you heavily invested and losing sleep, rather than just toughing it out, here's a practical options hedging strategy to learn: a bear put spread.
How it works: Buy a 73K put expiring 11/13, and sell a 68K put with the same expiration date. It costs just $7 in premiums. If the price really falls into the 73K–68K range, you can make up to $42—a pretty good risk-reward ratio, designed specifically to hedge against this leg down.
My take: The essence of hedging is spending a little to protect yourself. Don't wait until you're deep in the red to think about protecting your position.
#BTC #Crypto
How it works: Buy a 73K put expiring 11/13, and sell a 68K put with the same expiration date. It costs just $7 in premiums. If the price really falls into the 73K–68K range, you can make up to $42—a pretty good risk-reward ratio, designed specifically to hedge against this leg down.
My take: The essence of hedging is spending a little to protect yourself. Don't wait until you're deep in the red to think about protecting your position.
#BTC #Crypto
