Advanced Trading Strategies ep 4: Bull market strategies.
Disclaimer: the strategies outlined are crypto max risk, max return strategies you must do your own research and use proper risk management(ep2), if you want boomer type trad finance low risk strategies wait for ep 5.
To understand this strategy i’m gonna call the Godson Moon Wheel, you need to understand Theta, now what is theta, theta is the time decay of the options value, it is our enemy.
So… we want to long a Bitcoin or Ethereum megabull market with max leverage and avoid getting killed by Theta decay or risking liquidation. you see, the thing about theta decay, it decays disuniformly(for at the money and out the money options, don’t worry about it for now). Most of the decay occurs in the final 1/3rd of the life of the options contract. essentially we wanna dodge this.
So what do we do?. when a *STRONG* buy signal appears, we will buy an At the money call option expiring in a month, and when the market pumps significantly anytime in the first 2 weeks, we will sell the contracts and wheeeeeel the money into another options contract expiring in a month. This way, we trade the market like any 100x margin position.
you can take on more risk by purchasing contracts out the money(the strike price is currently above the current price) in a BTFD type scenario but now you have less time to wheel. or conversely buy In the money contracts; this causes theta to decay uniformly, giving you more time to wheeeeeeel.