Quote from: d_eddie on Today at 01:38:15 AM

Quote from: Biodom on Today at 12:48:28 AM

Quote from: d_eddie on Today at 12:27:55 AM

Quote from: somac. on February 20, 2021, 11:52:56 PM

Quote from: d_eddie on February 20, 2021, 11:48:07 PM

Quote from: somac. on February 20, 2021, 11:22:37 PM

3. Sell BTC covered calls

Hint: covered calls are a great way to sell you BTC, rather than the traditional sell at certain price point on normal exchange.

3. I like this. I imagine it is something like this: sell covered calls by posting btc collateral, and actually sell the btc at the strike price on expiry. Do you have any idea where that is possible?

You are correct. Deribit and FTX, are 2 places that I know off the top of my head. And you don't have to always post a full BTC as collateral, you can use margin, but then run risk of margin call.

There is of course the risk of a big price move in one month meaning you will miss out on a lot of capital appreciation.

Of course: a little like selling too early. But you do get advance money in return, after all. No free lunch and all that. I'm going to check the exchanges you suggested to get a feel for the premiums.

something like that.
You can sell 75K bitcoin calls, collect premium.
Then, if btc is lower than 75K at expiration, you keep BOTH your premium cash and your bitcoin, rinse and repeat.
If it is higher that 75K, then somebody basically buys your bitcoin at exactly 75K (plus $ premium that you collected).
The best thing, it is european style options (at least on ledger X, which is US-based), so your bitcoin would not be yanked from under you in the interim.
Not so good-you need to qualify with above $5 mil to sell options at intermediate odd prices (like 57, etc.).
Anybody who gets approved for the regular account could sell at 25, 50, 75K, now probably 100K as well.
I was considering selling some calls when btc was at $42K, very happy so far that I didn't.
EDIT: I checked and Dec 2021 75K calls have ~16K premium while 100K calls ~11K. Wow.
You can sell Dec 31 2021 200K calls and collect 3.8K in premium (on the bid)-exactly the lowest price in 2020.
The worst case scenario-you would sell at 200K plus 3.8K premium.
Lazer eyes.

Great post, Biodom. You're informative as usual. Thank you!

BTW @somac., I've checked FTX and they only seem to deal in futures - not options. Or maybe I have to sign up to see that?

FTX have the shitist UI ever. I took me a while to work out where their options were too, and they don't display an options chain either, you have to request a quote. Works well though, however, their premiums are a little lower here's a link.

https://ftx.com/options

And here's some more info on how the hell to get to that link and what the deal with finding the options prices are.

https://bitcointalk.org/index.php?topic=5316872.msg56334351#msg56334351