How to trade using volatility strategies $WCT ?

1. Mean Reversion Volatility Strategy

WCT, as a Web3 infrastructure token, often exhibits mean reversion characteristics in its price fluctuations. When the historical volatility (HV) is below the long-term average (such as the 20-day average), a straddle can be bought (simultaneously buying at-the-money call and put options), betting on a rebound in volatility. For example, if WCT's implied volatility (IV) falls below the historical 25th percentile, and on-chain activity (such as staking volume or MAU) increases, the probability of profiting from a long volatility position is higher.

2. Implied Volatility Arbitrage

Compare the difference between WCT's option IV and HV (IV-HV); when IV is significantly higher than HV (such as breaking the 90th percentile), a wide strangle can be sold (selling out-of-the-money call + put options) to capture the return from the volatility drop. It is important to note that WCT's unlocking events or ecosystem upgrades may temporarily push up IV, and positions should be adjusted based on fundamentals.

3. Event-Driven Strategy

WCT's volatility is often amplified due to events such as exchange listings (like Binance) and mainnet upgrades. Buying a straddle before the event and closing it afterward can capture the time value decay after IV expands. For example, the integration of Solana in 2025 led to WCT's intraday volatility reaching 30%; the profits from the straddle positioned before the event were significant.

Risk Warning: Need to monitor the selling pressure from staking unlocks and market liquidity to avoid excessive option selling during high IV periods. #WalletConnect @WalletConnect