Post
Topic
Board Securities
Topic OP
Help me hedge difficulty
by
optimator
on 07/08/2013, 21:28:14 UTC
I can't figure out how to hedge difficulty increases. Maybe I'm doing it wrong.

Here's what I have:

1. August 6 - Difficulty  37,392,766
2. I have purchased miners for 0.14 per Gh/s
3. The table below represents the net income (mined btc - miner cost ) for 6 months of mining, per Gh/s, based on three separate delivery dates for miners (October, November, December) at 5 different possible difficulty increase levels.

BTC Profit per Gh/s at various delivery dates and difficulty increase levels
Difficulty IncreaseOct 1Nov 1Dec 1
15%0.490.260.13
20%0.200.10(0.00)
25%0.09 (0.02)(0.08)
30%0.01(0.09)(0.12)
35%(0.06) (0.11)(0.13)

Assume, I believe I'll have miners in hand on October 1 and difficulty will increase linearly at 25%.
 
What difficulty futures should I purchase to maximize the mining income? Specifically, at what strike price, and what  quantity.