Hi all. I am currently doing dual investment at Binance and my understanding is dual investment is actually a mechanism that combine to kind of derivatives option contract together. And according to my understanding, if I do it directly on Deribit I can actually get better return. But I am having trouble to link up to two and have a better picture . Can anyone explain this to me please ?
Example here .
Bitcoin is $62k today and I would like to sell bitcoin at $82k on 27th December (3months from now) and Dual investment pays 12% pa. So I earn 3% in 3months. If the price is below target I get interest only and if the price is above target then I am obligated to sell but I still make the 3% return.
If I am to convert this the same scenario to derebit . How should I execute it ? My understanding is I need to buy 2 different kind of contract to make that happen.
I understand I can do one of the following:
Buy a call
Sell a call
Buy a put
Sell a put
Can any kind hearted person teach me how I can apply this to the scenario given ? I really hope to learn more about it. Thank you
Relations of Dual Investment versus Deribit
byu/ckng2000 inoptions
Posted by ckng2000