Spot Bitcoin ETF options: Another way to trade crypto

Hey everyone! I have some exciting news: moomoo now supports trading in Spot Bitcoin ETF options!

This is a big win for regular investors like us because it makes investing in Bitcoin that much easier, all within a regulated market.

Spot Bitcoin ETFs are a type of ETF that holds bitcoins to track their current or spot price.

Spot Bitcoin ETF options are financial contracts that give you the right, but not the obligation, to buy (call) or sell (put) shares of the underlying Spot Bitcoin ETFs at a predetermined price before a specified expiration date.

If you're looking to explore the crypto world, Spot Bitcoin ETF options offer a secure and affordable way for retail investors to experience Bitcoin.

Trading these options allows you to benefit from Bitcoin's price movements without needing to own the cryptocurrency or ETF shares.

moomoo's secure and user-friendly platform lets you tap into the potential of the Bitcoin market, providing you with reliable tools to navigate the landscape with ease and confidence!

It's currently one of the most actively traded Bitcoin ETFs.

So, how do we trade its options on moomoo?

First, go to the IBIT stock quotes page on moomoo and click on Options.

This will bring up the options chain for IBIT.

Next, you'll need to select an expiration date and a strike price.

Since IBIT options are newly available, there aren’t many expiration dates yet.

If you're interested in options expiring before January 2025, you're in luck—weekly options are available, allowing you to choose based on your strategy.

However, for expiration dates beyond January 2025, only five dates are currently open for trading.

So, if you're planning a long-term LEAPS strategy, you might find your choices a bit limited.

But don't worry—more dates are likely to become available as trading volume picks up.

Plan your strategy with this in mind, and keep an eye out for new opportunities as they arise!

Since IBIT options are still new, trading volume is just beginning to increase.

When selecting a strike price, aim for one with higher liquidity for smoother trading.

Generally, at-the-money (ATM) options offer better liquidity, so be cautious with out-of-the-money (OTM) or deep in-the-money (ITM) options.

After evaluating our options, we chose an ATM option expiring this week for the best balance of liquidity and opportunity.

Since IBIT options are still new, their trading volume doesn't yet match that of stock options, leading to wider bid-ask spreads.

This creates a larger gap between the selling price (bid) and the buying price (ask), so patience is essential for getting your options strategies filled.

Avoid using market orders to prevent being filled at unfavorable prices.

Instead, take advantage of moomoo's limit order feature, which allows you to set your desired price, though it may require some waiting for the market to match it.

If you need to adjust your price, simply tap the plus and minus signs below your order to make small changes and keep your trades under control.

On the trading page, there's a cool feature you definitely want to check out.

Tap the double-arrow icon to dive into your profit and loss analysis. This handy tool gives you a snapshot of your current P&L.

Now, here's the fun part: press and hold on the chart to bring up a dotted line.

Move that line to where you think the stock price might head, and voilà—you get an instant visual of potential outcomes.

If you're not a Bitcoin expert but want to get in on the action, Options Unusual Activity could become your best ally.

This feature highlights sudden spikes in options trading volume, potentially signaling the moves of larger investors and providing valuable insights for your trading strategy.

– Financial Power: With substantial funds, they can dominate in the options market.

– Information Access: They have access to more comprehensive market data than regular investors.

– Technical Expertise: Equipped with advanced technology and professional teams, they can make more precise decisions.

Overall, crypto ETF options offer another way to trade in crypto.

Options on spot Bitcoin ETFs function similarly to traditional equity options but with risks and prospects tied to the Bitcoin market.

Speculation: Speculate on the price movements of Bitcoin using less money, thus participating in potential gains while minimizing risks.

Hedging: If you hold bitcoins or Bitcoin ETFs, you can use strategies such as long puts or covered calls for hedging or to generate additional income.