Learning Options Trading：Real Case Studies

The situation from theory to reality is completely different. The theory is to be learned, but it is another matter to apply it to reality.

Theory; however, it is quite useless in the world of the virtual currency market unless it can be transformed into reality. To be blunt: making money is king.

It’s easy to make mistakes in options trading operations. Isn’t there anything more suitable for novices? options trading gives new traders the opportunity to make fast money. It’s possible to profit if stocks go up or down. Especially when the stocks downs, you will find its charm.

Some of the following cases are mine, and some are shared by others. Almost all are very successful examples. Whose is not important, but what can you learn from it?

BigoMex Option Case Study 1

1. The minimum amount of money needed to “get involved” in this trade was only 1 USDT (it could have been more if you wanted).
2. The trader made money when the price of BTC was increased (call option).
3. The trader made 3 options trades.

Trading review:

• Trader bought put options at 42,924.76 USDT/42,937.52 USDT/42,937.53 USDT
• Sold the put options at 43,400.00 USDT
• Trader’s gain: +75%
• Time of trade: 120 Sec

1. The minimum amount of money needed to “get involved” in this trade was only 12 USDT (it could have been more if you wanted).
2. The trader made money when the price of BTC was declining (put option).
3. The trader made 2 options trades.

Trading review:

• Trader bought put option at 4,3428.71 USDT
• Sold the put options at 43,400.00 USDT
• Trader’s gain: +75%
• Time of Trade: 120 Sec

These two examples are free to play, and there are not as many benefits as imagined, but it is very simple and easy.

BigoMex Option Case Study 2

, you can choose not only BTC/USDT trade assets, but also many other trading pairs with different interest rates. For example, this trade is LTC/USDT with a payout ratio of 200%.

1. The minimum amount of money needed to “get involved” in this trade was only 3 USDT (it could have been more if you wanted).
2. The trader made money when the price of LTC was declining (put option).
3. The trader made an options trade.

Trading review:

• Trader bought put option at 150.70711 USDT
• Sold the put option at 150.6276 USDT
• Trader’s gain: +200%
• Time of Trade: 120 Sec

BigoMex Option Case Study 3: Call Option

The trade idea was wrong, how to stop loss in time?

Stop loss is actually very important. If you see something wrong,withdraw as soon as possible (Of course, the most you lose is the cancel trade fee ).

The following example shows: what should you do when you find something wrong after you buy it?

• The minimum amount of money needed to “get involved” in this trade was 5 USDT (it could have been more if you wanted).
• I made money when the price of LTC was up (call option).

My trading philosophy is to buy up, and then look for a quick rebound. The rebound did happen, but soon, to my surprise, the rebound ran out in the blink of an eye. Seeing this scene, I realized that my thinking was wrong, so I withdrew from the transaction.

If you want to withdraw, you can tap “history” and find the icon before “Expiration Time” starts. The sooner you withdraw, the more you get back, the better you can make the next option trade.

Purchasing call options seems like a good place to start for new options traders because they are low cost. Buy a cheap call option and see if you can pick a winner. This may feel safe because it matches the pattern you’re used to following as an equity trader: buy low and try to sell high.

But they are one of the hardest ways to make money consistently in options trading. If you limit yourself to only this strategy, you may lose money more often than you make a profit.

Concluding remarks:

• Options trading can make big gain, but the loss is also very fast; so I never use more than 10% of the account funds;
• It is important to find the right direction;
• Only make coins that you are familiar with. I tracked BTC for more than a year, and finally only made profit in the last few months;
• Learning is a bloody process, and you will only really sum it up when you have blood.