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- Ditch Your Bitcoin for Bigger Profits ๐ ๐ฅ
Ditch Your Bitcoin for Bigger Profits ๐ ๐ฅ
Helping EVERYONE to make better crypto investment decisions.
๐ 1) Predictably, the crypto market has become quiet during these summer weeks.๐ 2) This has caused trading volumes and volatility to fall markedly.๐ 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.๐ 4) It is not a surprise to us, nor to our readers, that volatility has now dropped to the lowest level for US stocks โ 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).

๐ 5) This allows locking in the year-to-date gains for Bitcoin, while the call option exposure allows participating in any upside rally.๐ 6) Are you worried about the seasonal sell-off in September? With long calls, you do not need to worry.๐ 7) The freed-up capital could be deposited into interest-yielding products, such as Matrixdockโs STBT, which currently yields +4.7% - a similar yield as Ethereum staking protocols are offering (5.2%).๐ 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.๐ 9) This โBitcoin replacement strategyโ 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 yearโs 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.๐ 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 !!!
