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What Is the Main Risk for an Option Buyer of a Volatile Crypto Asset?

The main risk is losing the entire high premium due to time decay.
Greeks.Live22.11.25

What Is the Main Risk for an Option Buyer of a Volatile Crypto Asset?

The main risk for an option buyer of a volatile crypto asset is losing the entire premium due to time decay. While high volatility offers a chance for a large profit, the option's high premium (due to high IV) means the underlying asset must move significantly and quickly to overcome the cost and time decay.

What Is “Theta” and How Does It Measure Time decay’S Effect on an Option’s Value?
What Is the Maximum Profit for a Long Call Option Buyer?
How Does the Time Decay (‘theta’) Affect the Value of an Option’s Premium?
What Does a High Theta Value Imply for an Option’s Value?

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