Ditch Your Bitcoin for Bigger Profits 🚀 💥
Helping EVERYONE to make better crypto investment decisions.
👇 1) Predictably, the crypto market has become quiet during these summer weeks.
👇 2) This has caused trading volumes and volatility to fall markedly.
👇 3) Investors might be well advised to replace their Bitcoin spot with Bitcoin options, notably upside calls, as lower volatility has made option prices cheaper.
👇 4) It is not a surprise to us, nor to our readers, that volatility has now dropped to the lowest level for US stocks – as the VIX Volatility Index has declined to just 13.2% - as well as for Bitcoin, where realized volatility is trading at only 27% (see chart).
👇 5) This allows locking in the year-to-date gains for Bitcoin, while the call option exposure allows participating in any upside rally.
👇 6) Are you worried about the seasonal sell-off in September? With long calls, you do not need to worry.
👇 7) The freed-up capital could be deposited into interest-yielding products, such as Matrixdock’s STBT, which currently yields +4.7% - a similar yield as Ethereum staking protocols are offering (5.2%).
👇 8) Investors could liquidate their Bitcoin spot, which has rallied +77%, and buy an at-the-money call monthly for around 3% of the notional value.
👇 9) This ‘Bitcoin replacement strategy’ would guarantee continuous exposure to the upside opportunity of Bitcoin through buying a Bitcoin call every month for 3% notional exposure (5 [Aug-Dec] *3% = 15%) while locking in this year’s gains of +77% (minus 15% for the calls), which leads to a net gain of ~62% even if Bitcoin prices retrace from here and each call loses money.
👇 10) STBT would generate +1.96% (5/12*4.7%). So net, this strategy locks in +64% gains for BTC while still having 100% of the upside for the rest of the year.
Use the summertime to read: "Crypto Titans: How trillions were made and billions lost in the cryptocurrency markets". Available on Amazon (and other places): -> received 25 five-star reviews so far !!!
