The thesis is simple, BTC in my opinion is likely to reach 80-90k, coinbase is the custodian for balckrocks ETF and the only public exchange in the US. For those thinking its to late, I think this could be a trade to leverage the last leg of this bull run. looking at the past correlation between btc and coin I think a potential target of 315 by late July/August
I am familiar with financial markets, but I am just starting to become familiar with options. Think of someone who academically knows many of the concepts but misses experience.
What would be the best way to leverage this thesis with options ?
Coinbase long – best option strategy
byu/Weak_Page3378 inoptions
Posted by Weak_Page3378
4 Comments
Buy OTM calls (0.2 To 0.1 ranging Delta) with DTE far from your expectation of the period that you believe the price of the underlying will increase…If the prices go following your thesis, you can make a lot of money with options…
Maybe not a popular option, but you can take a look at CONY, a covered-call etf based on COIN
check out BITO, I bought 100 shares in March and have gotten almost $300 in dividends in two months, plus premiums from covered calls
Idk why everyone is listing covered call ETFs, covered calls limit your upside…
OTM far dated calls will give you maximum return if they go ITM, from gamma. You can also trade BTC futures directly. Note these carry the possibility of total loss, especially OTM calls.
MSTR is heavily levered to BTC. Hood and Coin also rely a lot on BTC. But for direct exposure, trading directly on coin.
MARA / RIOT are miners, but obv carry single company risk.
Oh, and everyone knows BTC is volatile so all these options are relatively expensive. Debit spreads are cheaper to get into, but limit upside at the short strike.