Options Industry

This Week in Futures Options 83: How the Bitcoin Has Fallen


Is Bitcoin subject to Newton's third law (for every action, there is an equal and opposite reaction?)

Listen to This Week in Futures Options 83: How the Bitcoin Has Fallen

Topics this week include:

  • Bitcoin
  • Crude Oil
  • Gold
  • Winners - RBOB, Platinum
  • Losers - Feeder Cattle, Oats

Futures Options Feedback: Listeners have their say

  • Comment from TinySpec - @Options @QuikStrike1 @CMEGroup "Donald Trump might be long bitcoin! "?!?!?!?!?
  • Question from MarkClydeBrant1 - Should CL be priced in BTC value of GC to strip out USD risk?...Can't wait to see the COT reports on BTC Commercial Shorts: BANKS.
  • Comment from Ezpreso - Good bit on gold v #bitcoin from CME - openmarkets.cmegroup.com/12749/bitcoin-gold-growth-comparison
  • Comment from Bilc - Good job on the show Nick! Mark left the show in good hands. He can take vacations more often.
  • Question from LV67: Why is futures and FO data so hard to get?
  • Question from Camper: Do you notice any interesting patterns in corn volatility skew ahead of crop planting or harvesting?
  • Question from Tim Haver: What's the cost for the premium version of quikstrike? I like the free stuff that I play with during the show and I'm thinking about taking the plunge.
  • Question from NOZ3T: Is it possible to hedge some of these aggregate commodity ETFs with puts in their underlying itself - so hedge USO with WTI puts, Corn with corn puts - you get the idea?
  • Question from NOMNOM: I was excited about #bitcoin but this is giving me pause.
From the article: About 40 percent of bitcoin is held by perhaps 1,000 users; at current prices, each may want to sell about half of his or her holdings, says Aaron Brown, former managing director and head of financial markets research at AQR Capital Management. (Brown is a contributor to the Bloomberg Prophets online column.) What's more, the whales can coordinate their moves or preview them to a select few. Many of the large owners have known one another for years and stuck by bitcoin through the early days when it was derided, and they can potentially band together to tank or prop up the market.

Because bitcoin is a digital currency and not a security, he says, there's no prohibition against a trade in which a group agrees to buy enough to push the price up and then cashes out in minutes.

Other investors say the whales won't dump their holdings, because they have faith in the long-term potential of the coins. “I believe that it's common sense that these whales that own so much bitcoin and bitcoin cash, they don't want to destroy either one,” says Sebastian Kinsman, who lives in Prague and trades coins. But as prices go through the roof, that calculation might change.


About Mark S. Longo


Mark S. Longo is the founder of The Options Insider Inc. - a firm dedicated to providing free options information, education, news and analysis for options users. Whether it's on TheOptionsInsider.com, a leading online options destination; through Options Insider Radio, the world's only radio network for options users; or through a growing number of newsletters and live events, Mr. Longo continues to provide new ways to spread the word about options.Mr. Longo's analysis of the options market has appeared in a wide variety of domestic and international publications, including The Wall Street Journal, Financial Times, Reuters, Futures Magazine, and more. As one of the few industry commentators with practical options experience, he has developed a substantial following among industry veterans and newcomers looking for insight into this complex market. Mr. Longo began his career as an options trader on the floor of the Chicago Board Options Exchange.

Author's web site: http://www.theoptionsinsider.com


View Mark S. Longo's post archive >

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The Options Insider Radio Network

The Options News Rundown

Your source for the most important news and information from the world of options.

The Options News Rundown

The Options Insider Radio Network

All of our radio programs in one convenient place.

The Options Insider Radio Network

Options Insider Radio

The original options podcast. Features interviews with leading options figures.

Options Insider Radio

The Option Block

This high-octane program features education, analysis, strategies and unusual activity.

The Option Block

Volatility Views

The premier radio program for volatility traders.

Volatility Views

The Long And Short Of Futures Options

Your source for futures options information.

The Long And Short Of Futures Options

The Advisor's Option

Arming advisors with the info necessary to manage risk.

The Advisor's Option

Options Boot Camp

Get into peak options trading shape.

Options Boot Camp

Options Insider Special Events

Compelling panel & special event recordings from the options world.

Options Insider Special Events

OIC's Wide World of Options

A dynamic mix of current events, investor resources, & strategy insights.

OIC's Wide World of Options

Trading Tech Talk

We break down all the amazing technology that takes your trades from the click of a mouse to the clearinghouse.

Trading Tech Talk

Options Playbook Radio

Break down cutting-edge options strategies and learn how to incorporate them into your portfolio

Options Playbook Radio

Options Oddities

We track all the unusual options trading activity on Options Oddities.

Options Oddities

This Week in Futures Options

The program designed to help active futures options traders stay on top of this ever-changing marketplace. 

This Week in Futures Options

The Business Show

If you like business, if you like humor, if you like stock symbols, this is the podcast for you.

The Business Show