Will Options Cabinets Dominate Real Yield Products in Crypto?

Will Options Cabinets Dominate Real Yield Products in Crypto?

Options strategies, especially writing weekly covered calls, are a commonly used return-producing mechanism on TradFi.

United State ETFs for covered calls It alone has a total of $12 billion under management with the top performing ETFs being 19.47% of returns.

according to Flynt Financial‘s back test reportBitcoin covered calls have been shown to produce approximately 49% returns per year if the strategy is run at a certain level of risk and return.

An important factor to consider when running the strategy is the choice of delta and leverage that can maximize returns and reduce the risk of being in the money.

Moreover, if 10 Bitcoins were invested in this strategy as of April 2019, the current assets would be 26.7 BTC. Due to the highly volatile nature of cryptocurrencies, profits are much higher compared to TradFi.

What are covered calls?

Covered calls are systematic options trading strategies that generate passive income by selling put options on an investor-owned asset each week.

When selling options, the seller transfers the right to buy the asset at a specified price in exchange for a premium. The premium is then converted into a return on investment.

Although it sounds very simple, it is important to keep in mind that the strike (strike) price needs to be chosen carefully because it is what decides whether the investor will end up winning or losing for the week.

Based on back-tested results, Flynt’s breakthrough spot was able to generate a profit rate of 96.4% over 3.4 years.

Given that returns are generated through the current covered call strategy, the real return is achieved without any false promises or token emissions, providing sustainable returns for investors.

Transparency is what you should be looking for

In this context, the market remains in a state of fear over lending returns after the Terra Luna crash, with memes continuing to emerge. Twitter Saying “If you don’t understand the source of the return, you are the return.”

Because of this incident, the industry has matured and many services that provide returns without disclosing the source have gone overboard. In fact, the List the real return It is what many believe will be the natural next step for crypto investors who are envisioning dividend-like returns.

In simple terms, protocols and services that provide returns to investors through profits generated from the platform or trading activities is a sustainable way to earn passive income.

David Siew, CEO of Flynt, stresses that “as a web 3 player, one of the most important actions to take is to be radically transparent and communicate every step the service makes” and that “Flynt is willing to display all the information we have in relation to the services that we offer because we have nothing to hide.”

Flynt explained that the 5x covered call strategy is available on Bitcoin, which offers a sustainable return of up to 40%.

They highlight that Flynt is in the process of retesting other assets and various structured strategies that can generate maximum returns at relatively lower risk.

Flynt also stated that they pride themselves on offering only products that have historically made profits rather than blindly focusing on expanding product lines.


All information on our website is published in good faith and for general information purposes only. Any action the reader takes regarding the information on our website is at his or her own risk.

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