Trading

In the ever-evolving landscape of digital assets, savvy traders are constantly seeking innovative strategies to maximize gains. One such strategy gaining traction is the carry trade, and today, we'll delve into its application specifically on XRP. As a Founder of the Terramatris crypto hedge fund, I'm excited to shed light on the exciting possibilities that the carry trade on XRP presents. The carry trade is a time-tested strategy that involves profiting from the interest rate differentials…

Options trading in the crypto market presents a myriad of strategies, and mastering the art of adjusting positions is a vital skill for navigating market fluctuations successfully. In this comprehensive exploration, we'll delve into the intricacies of adjusting a 1 DTE (Day to Expiration) Crypto Put Option, drawing insights from a real-world scenario involving the TerraMatris crypto hedge fund. Before we embark on the journey of adjustment strategies, let's take a moment to revisit the…

On October 10, 2023, I sold 1 bull put spread on Tesla stock with strike prices at $247.5 and $242.5 with expiry on October 13, 2023. For this trade setup, I was rewarded with $22.92 (after commissions). As on October 10, my blog was celebrating its 10 anniversary I wanted to celebrate it with something BIG - and without much thinking, I came to options trading. Tesla seems like an ideal candidate for this anniversary. Maybe on the blog's 20th birthday, I will be able to buy actual TSLA. …

On October 5th, 2023, I sold one covered call option for Terramatris Crypto hedge fund on Ethereum, using perpetual future as collateral. I bought 1 ETH future at $1,636.89 and simultaneously sold 1 call option with a strike price of $1,650 and an expiry of October 6, 2023, for this trade setup I was rewarded with $4.4 in premium (before commissions).  When trading with perpetual futures we are also paying a funding fee, which for most of the time is 0.01% every 8 hours (about 0.03% daily or…

While working on the Terramatris crypto hedge fund I came up with an idea once in a month to re-invest the total value of the fund into the so-called Bitcoin contango trades. As the total value of the fund was about $74 at the end of September that's capital I put in work with bitcoin futures. Without further ado: On September 29, 2023, I bought Bitcoin perpetual futures worth 0.135 BTC at $27,162.50 per Bitcoin and simultaneously sold October 27, 2023 expiry bitcoin futures worth 0.134 BTC…

We use bitcoin contango trades occasionally at TerraMatris crypto hedge fund and look at them as short-term deposits with high returns. In today's article I'll share one such trade, we did recently On September 14, 2023, I bought Bitcoin perpetual futures worth 0.2 BTC at $26,365.90 per Bitcoin and simultaneously sold December 29, 2023 expiry bitcoin futures worth 0.2 BTC at $26,704.50. This is the so-called futures spread with a width of $338.6 and a holding period of 106 days. The closer…

Lately, I've been playing around with the idea of selling put options on crypto. A popular income-generating strategy in the stock market. But there are a bit different rules in crypto, with the biggest difference being - crypto options are settled in crypto itself, meaning there is no actual crypto delivery, no assignments, or whatsoever, once your strike price is touched, you pay the difference in crypto itself. Say you sold Bitcoin Put with a strike price of $30,000 and BTC dipped to $25,…

On July 14, 2023, Bitcoin cracked $31,000 and Ethereum hovered around $2,000, thus my call position expired in the money and I realized profit from selling futures contracts Originally I established these trades on July 3, 2023, buying 0.1 BTC futures at $30,809 and 1 ETH futures at $1,952 and selling call positions against them. /* /*]]>*/ BTC                 Premium Buy price Strike Price current price mul Gain   Loss   0.00265 $30…

On July 7, 2023, I rolled forward two covered call positions on Bitcoin and Ethereum, using perpetual futures as collateral. Originally I established these trades on July 3, 2023, buying 0.1 BTC futures at $30,809 and 1 ETH futures at $1,952 and selling call positions with July 7th expiry at $31,000 and $1,950, respectively. As none of the call positions expired in the money, I just rolled to the next week's (July 14) expiry for both positions: The total premium received so far from selling…

On July 3, 2023, I sold two covered call positions on Bitcoin and Ethereum, using perpetual futures as collateral. At first, I bought 0.1 BTC futures at $30,809 and simultaneously sold a 0.1 call option with a strike price of $31,000 and an expiry of July 7, 2023, for this trade setup I was rewarded with a 0.00155 BTC premium.  Perpetual futures are traded with 50x margin on the Deribit trading platform, and to control futures worth 0.1 BTC I was required just 1/50 in margin collateral, or to…