Don't trade crypto options, wait for a Bitcoin ETF instead

Updated: 17 December, 2020 seen 202

I was trading call options on the Deribit platform both on BTC and ETH cryptocurrencies. To make myself accountable  I decided to run a 30-day experiment - trading 1DTE call options.

On Deribit platform I've been trading crypto options with various success since April 2019, unlike stock options, crypto options are cash-settled in crypto, which can make this bit complicated, make sure to read out my previous article on this topic;

In March 2020, with stock markets collapsing, Bitcoin also collapsed, and many investors were calling Bitcoin a junk (including me) - my open positions on Deribit were facing liquidation buy and I lost some good money there (but as I have been making this good money in the past, I didn't cry much, let's say this - I was break-even)

Now I withdrew what was left, and for some 6 months forgot about the platform (and instead focused on the stock market).

At the end of November 2020, after a sudden Bitcoin rally, it was a hot potato once again in many Facebook investor groups. I decided to give one more try to the deribit trading platform and deposited some ETH and started 30-day call option challenge

30 Days Ethereum Call options Trading Challenge (Deribit)

On day 22 my funds were blown away totally. This is something I was actually expecting

Daily income from Trading 1DTE options on Deribit

Daily income from Trading 1DTE options on Deribit

With Bitcoin rallying for the first time above $20,000 my call OTM positions (which were established 24 hours before) were literally blown away. In total I lost more than $300 today.

My total investment was $632.72, and after today I was left with $499.05, now this is something impossible in the stock market when selling covered calls. 

If I were not selling any calls today, my crypto value would be about $1,000, but what's important - I would keep all my coins. 

I decided to stop this experiment now, withdrew all funds from the Deribit, and not looking to get back anytime soon - if, then only buying calls or puts (not selling), but better I will wait for a real Bitcoin ETF we can trade options with.


Hi! My name is Reinis Fischer (38), a proud dad and devoted husband. CEO and Founder of Terramatris crypto hedge fund, drone enthusiast, world traveler, photographer, and passionate lover of Georgian cuisine (vegetarian).

An ex-pat living in Georgia since 2011, I trade stocks, take photographs, work out at the gym, and many more. Here I write about travel, finance, and other things that might interest me.