Podcast Summary
This podcast episode delves into the world of Bitcoin trading, focusing on the current market trends and the hosts’ unique options strategy. The hosts discuss the potential bottom of Bitcoin’s range, the impact of market movements on their strategy, and the benefits of trading options over the underlying asset. They also provide updates on their synthetic miner account on Deribit and their Patreon page.
Key Takeaways
Bitcoin’s Market Position
- Bitcoin’s Range: The hosts discuss whether Bitcoin has reached its bottom or if there will be a range break. They believe there is a good chance Bitcoin will stay in a range between the mid-50s and 60,000 for a while.
- Market Movements: The recent dramatic move in the market and its impact on their trading strategy is discussed. The hosts express confidence in the market’s recovery and their ability to generate returns.
Options Trading Strategy
- Options Over Underlying Asset: The hosts highlight the benefits of trading options over trading the underlying asset. They explain how their options strategy allows them to make money even when the price of Bitcoin goes down.
- Options Management: The hosts discuss their current strategy of selling calls against in-the-money puts to accumulate more Bitcoin. They also mention the importance of controlling risk and not going too big in position size.
Deribit and Patreon
- Synthetic Miner Account: The hosts provide an update on their synthetic miner account on Deribit, which is designed to accumulate Bitcoin using options. They mention the insurance fund on Deribit that protects against default risk.
- Patreon Page: The hosts mention their Patreon page, where they provide more detailed analysis of their trading strategies.
Sentiment Analysis
- Bullish: The hosts express a bullish sentiment towards Bitcoin, expressing confidence in the market’s recovery and their ability to generate returns. They also discuss their plan to start layering on long positions and being long gamma going into the end of the year and next year, to benefit from potential big moves in Bitcoin.
- Neutral: While the hosts are bullish on Bitcoin, they also acknowledge the need for risk control and the importance of not going too big in position size. They also mention the possibility of missing out on further price increases if they don’t have enough options, indicating a balanced view of the market.
