When it seems like the sky is falling, it is a good time to see what the pillars and money makers are saying and doing. That could not be easier to do as Benziga’s respected chief options strategist opened up and shared solid advice.
Bitcoin BTC/USD should go above $34,000 in the next couple of days, and if it fails, don’t be surprised to see it at $20,000 or $19,000. It’s not a bad thing, and don’t make fun of it, find an opportunity. This is what Nic Chahine, Chief Options Strategist and Benzinga Options said at the 2022 FinTwit Conference on Saturday.
On Crypto Market
Talking about the crypto market, Chahine said, “If people associate with the crypto market [and] are in the business of investing, and you choose not to play with the biggest players, then I find that very surprising.”
“They are super smart and cool. This is the best-performing asset. Nothing will give you a return like these guys. Even Dogecoin DOGE/USD and I bought Doge yesterday. The patterns play out because of the opinion. I found them to be agnostic fundamentals,” he added.
On Options
Speaking about options in the market, Chahine said market volatility is here, and volatility will be here for a while. You must be humble with your opinions and trade normally.
“Options has two sides, you got calls in one hand, and then you got puts on the other hand. Neither bearish nor bullish. It depends on what you do with them. If you own Apple Inc AAPL shares and go on vacations, you can buy insurance with the options. You go out and buy a put. That’s a contract. Calls and puts are contracts. They have terms and conditions,” he said.
Talking about dealing with the stocks reporting earnings, he said, “If a stock is reporting earnings, the option prices for that week are on steroids. So do not buy options in the weeks when there is a vent. You will lose money either way. So don’t buy options and if you must vent in that week, then do a spread.”
On Charts
Chahine insisted that people should understand charts thoroughly. “You should expand your timeframes on charts. Know what chart you are looking at. So, if your idea is long-term, you are going to look at the long-term chart, but if your idea is more about the next couple of weeks, you should start with the long-term chart and then go down and look closer,” he said. “If you are trading for two to three weeks, you should look at a 30-minute chart. They are very helpful. That will show you good enough information, and it’s granular enough to be accurate with the data.”
