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1/ For all the newbie Option traders asking about volatility here is the TLDR thread on IV. ๐Ÿงตโšก๏ธ

Hopefully this clears a few things up. ๐Ÿ‘
2/ IV is actually just the expected move of a certain percent over a defined amount of time.

So if IV is 60%, #BTC has the potential to move 60%.
3/ This percentage is actually a 1 standard deviation move. Which means it will cover #BTC's move 68.2% of the time.
Read 8 tweets
1/ Today in our #Powerknowledge series we are going to talk about what happens when you buy or sell Call?

Over the course of this series we will talk about Greeks, Volatility, Leverage, and Spreads, but first we must build a foundation.

A thread. ๐Ÿงต๐Ÿ‘‡
2/ So what is a Call? I'm sure you have heard it 100 times, a call is the right (but not the obligation) to buy $BTC at a certain price, within a certain time period.
3/ That's the book definition, but I find it helps to look at a real world example. Say you buy one 50k #BTC Call that expires in 60 days. If at expiry #BTC its trading at 52k, you have the right to buy 1 #BTC for 50k. Does that make sense? You just bought #BTC at at 2k discount.
Read 18 tweets

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