Looking at Deribit, in order to get 10% premium for March 26 calls you need to sell at $60k strike, meaning that if in 1 month BTC goes up by anything over 7% you'll loose some of your BTC (or as you claim "miss out on some capital gains"). Now you just have to do it consistently every month, and hope Deribit doesn't go the way of Gox.
mtgox and blockfi aside (you are correct there, imho), why 60K and why all the time in Deribit?
Why selling here now as some people have done instead of picking your potential sell price (75, 100, 200) and lock in an additional premium?
Big whoop if you lock in premium at 200 and it goes to 300.
Of course, nobody says anything about doing it with the whole stash-well maybe somebody does it, but it ain't me.
I haven't diddly-squat yet, kind of kicking the tires right now.
Peeps with a large stash should have talked to a fin advisor who understand these types of strategies
If you do this with the whole stash, then you better use even more advanced strategies using futures, etc.
planbB (or preston pysh?) is saying that hedgies are on the hook for 1.5 bil already selling futures and buying same amount of spot btc, of vice versa, I don't recall.
Apparently, it is 20% yearly return with practically no risk. It is caused by a significant contango in btc futures..