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    [Daily Discussion] - Sunday, August 22, 2021 Bitcoin Markets

    [Daily Discussion] - Sunday, August 22, 2021 Bitcoin Markets


    [Daily Discussion] - Sunday, August 22, 2021

    Posted: 21 Aug 2021 09:00 PM PDT

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    BTC covered call with futures long hedge

    Posted: 21 Aug 2021 05:02 PM PDT

    I've seen many discussions on covered calls so understand those dynamics well. I'd like to consider hedging a blowout scenario where BTC goes beyond the strike price (of the sold call option). While the USD value of the trade is net positive you'll end up with less BTC.

    Two strategies I can think of would be to a) buy a call option further out beyond the sold option's strike price. E.g. sell at 50k, buy at 52k, b) setup a stop order to go long on a futures contract at 50k.

    The second option is susceptible to the swings of the market while the option has yet to expire. The trade may execute but at the time of option expiry be below the 50k.

    In closing my looking for a low risk BTC yield generating strategy. Any ideas/feedback appreciated

    submitted by /u/bado2018
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