Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
somac.
on 21/02/2021, 00:51:54 UTC

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.

Good luck with it.