Unchained LedgerX on the Reasons to Trade Bitcoin Options - Ep.130
Jul 30, 2019
Juthica Chou, COO and Chief Risk Officer of LedgerX, shares insights on their new platform, Omni, now available for retail investors. She explains the advantages of trading Bitcoin options, such as managing risk and enhancing investment strategies. The conversation highlights the superiority of physically settled options over cash-settled ones. Juthica also discusses the challenges of Bitcoin hard forks and the innovative halving contracts that allow traders to speculate on market dynamics. Her experiences during the 'blockchain not Bitcoin' era offer a unique perspective on the evolving crypto landscape.
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Ari Paul's Bitcoin Call Options
- Ari Paul bought $50,000 Bitcoin call options in December 2017.
- He viewed it as a way to capture upside potential while limiting downside risk during market volatility.
Physically Settled Options
- LedgerX prioritizes physically settled options, crucial for participants like miners.
- Miners use these options to hedge against Bitcoin's price volatility relative to the US dollar.
Why LedgerX Chose Derivatives
- LedgerX believes options are crucial for market development, aiding businesses holding Bitcoin.
- LedgerX chose a harder federal regulatory path (CFTC) for broader oversight and preemption over state licenses.