Dow plunges 1000 points

Re:Dow plunges 1000 points by dawhizkid on Monday February 05, 2018 @04:32PM (#16312399)

Surprised no one has made the cryptocurrency equivalent of VIX that moves in the opposite direction of a basket of cryptocurrencies.

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Re:Dow plunges 1000 points by dereg on Monday February 05, 2018 @04:36PM (#16312434)

VIX is based off of the S&P 500 options premiums. There’s not an options market on crypto baskets that I know of (yet).

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Re:Dow plunges 1000 points by nobbis on Monday February 05, 2018 @05:51PM (#16312980)

VIX is a variance swap, so a "CryptoVIX" would move in line with the expected short-term realized volatility of a basket of cryptocurrencies, not their price.

It'd certainly be possible to price such an index (replicating strategy of portfolio of strips of calls/puts of various cryptocurrencies) but it'd be impossible to hedge because transactions costs are too high. You could hedge with crypto-options, but AFAIK they don't exist yet.

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Re:Dow plunges 1000 points by AznHisoka on Monday February 05, 2018 @04:48PM (#16312540)

Short Overstock. It moves very closely in align with crypto.

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Re:Dow plunges 1000 points by dlb_ on Monday February 05, 2018 @04:49PM (#16312553)

Why is that? Do they have exposure to crypto?

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Re:Dow plunges 1000 points by wrigby on Monday February 05, 2018 @04:51PM (#16312565)

Yeah, they've made it a point to emphasize that they're working on crypto / bitcoin related things[1].

1: https://www.investopedia.com/news/overstock-goes-all-bitcoin...

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Re:Dow plunges 1000 points by zitterbewegung on Monday February 05, 2018 @04:51PM (#16312564)

Yes, they have been accepting crypto in payments for awhile and famously held a bunch. CEO is invested into it.

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Re:Dow plunges 1000 points by peter303 on Monday February 05, 2018 @04:50PM (#16312557)

Bitcoin down almost 70% since high

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