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Are there any specific indicators or patterns to watch for when considering option time decay in cryptocurrency trading?

avatarAjay SinghDec 26, 2021 · 3 years ago1 answers

What are some specific indicators or patterns that I should pay attention to when considering option time decay in cryptocurrency trading? How can I use these indicators or patterns to make better trading decisions?

Are there any specific indicators or patterns to watch for when considering option time decay in cryptocurrency trading?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, suggests that when considering option time decay in cryptocurrency trading, it's important to focus on a few specific indicators and patterns. One indicator to watch for is the Open Interest (OI) of the options. Higher OI indicates more active trading and can affect the time decay. Another pattern to consider is the historical volatility of the underlying cryptocurrency. If the cryptocurrency has a history of high volatility, it can impact the time decay of options. So, pay attention to these indicators and patterns to better understand the dynamics of option time decay in cryptocurrency trading.