3 Oct 2025
This discussion outlines a comprehensive options trading strategy designed to either generate consistent income or facilitate asset acquisition at favorable prices. The approach emphasizes strategic market management across various scenarios, mitigating risks more effectively than relying solely on price predictions.
A general investment strategy is introduced, clarifying concepts previously hinted at without specific details, making the approach more accessible to the audience.
An investor can sell a put option at a specific strike price (e.g., $4000 for Ethereum) with a set expiration period, receiving an upfront premium (e.g., $300-$400), which effectively reduces the potential purchase cost to a desired level (e.g., $3600). This trading activity is considered routine and moderately complex.
If the asset's price remains above the strike price (e.g., Ethereum stays above $4000) by the expiration date, the investor retains the entire premium, resulting in a continuous profit (approximately 9-10% in the given example) without making any asset purchase.
Should the asset's price fall below the strike price, the investor is obligated to buy the asset at the strike, effectively acquiring it at their pre-determined desired price (e.g., $3600 after accounting for the premium), which aligns with their initial investment goal.
To protect against significant price crashes, investors can use a portion of the received premium to purchase 'insurance' (e.g., a protective put option), effectively hedging their position and limiting potential losses.
This strategy enables effective management across all market directions: profiting if the price rises, acquiring at a favorable price if it drops moderately, and limiting losses if it crashes, eliminating the need to solely predict market movements.
The core philosophy emphasizes managing various market scenarios through strategic positioning rather than attempting to accurately predict future price movements, thereby preventing severe losses from incorrect forecasts.
The strategy incorporates leverage, not just for amplifying returns, but for strategic flexibility. It advocates for allocating a small portion (e.g., 10%) of capital to high-risk, high-reward opportunities (e.g., 10x potential return) while safeguarding the majority (e.g., 90%) through conservative management.
Investors requiring KYC can utilize platforms like OKX and Deribit, with Deribit noted for its user-friendliness and micro Bitcoin contracts for hedging. Those without KYC in certain regions can access decentralized exchanges.
Management is prioritized over prediction, enabling investors to navigate market movements effectively rather than solely relying on forecasts.
| aspect | detail |
|---|---|
| Strategy Focus | Selling Put Options for income generation or asset acquisition |
| Core Philosophy | Prioritizing market management over price prediction |
| Upward/Sideways Market Outcome | Investor retains premium, generating consistent profit (e.g., 9-10%) |
| Moderate Downward Market Outcome | Investor acquires asset at a desired, effectively reduced price |
| Significant Downward Market Mitigation | Risks are limited through hedging or 'insurance' using a portion of the premium |
| Leverage Application | Used for strategic flexibility and managing diverse market outcomes |
| Capital Risk Allocation | 90% of capital managed safely; 10% allocated to higher-risk, high-reward opportunities |
| Recommended Platforms | OKX and Deribit (for KYC users); Decentralized exchanges (for non-KYC users) |
