dualstow wrote: ↑
Wed Nov 17, 2021 9:38 am
Okay can we get back to personal crypto portfolios?
I like Bitcoins in my portfolio.
Ill throw a couple alternate ideas out as well.
1. Buy BTC, collar it.
Buy spot BTC and then sell a call against it and take the $ from that sold call and buy either a put spread or puts. Example for September 2022 expiration: Buy 1x $60k BTC, sell an 80k call against it, and buy 60k put for downside protection. You can get this for essentially no cost. The positioning here allows upside exposure to BTC up to $80k, and you have no risk of a downside move (since current BTC price is $60k).
2. BTC Cash and carry.
Buy spot BTC and sell futures against it. Example: Buy 1x $60k BTC now, and sell 1x BTC worth of September 2022 futures against it. September futures are currently $65k, so you make a nice $5k profit with no BTC price risk. This isnt as attractive as its been at "only" ~10%, but still nice "risk free" trade. This trade has gotten into the 20%+ range during bullish periods.
3. Sell BTC covered calls.
This one has some downside risk, but if you already have some BTC and already told yourself youd sell your BTC if it hits $100k, why not sell a $100k call against your BTC and make some additional $ vs just selling it? A September 2022 $100k call sold would give you $12,000 USD.