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DOGE $0.0694 -0.71%
ADA $0.1615 -3.72%
BCH $209.37 -1.16%
LINK $8.27 -3.02%
HYPE $56.98 -3.10%
AAVE $90.89 -5.05%
SUI $0.7027 -5.35%
XLM $0.1768 -3.69%
ZEC $474.20 -6.87%

10x Research: It is recommended to hold spot Bitcoin and sell out-of-the-money call and put options linked to Bitcoin

2024-05-20 15:09:06
Collection

ChainCatcher news, according to CoinDesk, 10x Research recommends selling out-of-the-money (OTM) call and put options related to Bitcoin while holding Bitcoin in the spot market.

10x Research stated: "In addition to spot market holdings, BTC investors looking for additional income should consider implementing a 'covered strangle' options strategy. Our preferred strategy is to buy Bitcoin spot, sell call options with a strike price of $100,000, and sell put options with a strike price of $50,000 expiring in December 2024. The yield from selling call options is 11%, and the yield from selling put options is 6%. Therefore, this strategy provides us with a 17% downside buffer or 17% additional yield, depending on the December BTC closing price, and we will capture all the upside (or downside) value of Bitcoin."

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