Market Measures - September 14, 2021 - Trading Options on Crypto Stock

published 1 week ago by tastytrade, Inc.

Because a semi-strong correlation exists between BLOK and Bitcoin, one may consider using BLOK options as a proxy for Bitcoin options. Due to its IV, liquidity, and price, BLOK is accessible to most account sizes. Comparing the theoretical risk between a BLOK strangle and a hypothetical Bitcoin strangle, one BLOK strangle currently carries roughly 1/100th the risk of one Bitcoin strangle.

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