Embrace the main upward trend of ETH. If buying a Call seems too expensive, why not try this?
⁉️ How to construct it
The strategy name is: call diagonal spread; as shown in the diagram, construct a 2-leg options strategy: buy 1 call at $4000 expiring on September 26, and sell 1 call at $3800 expiring on August 1 (initial premium investment of $150, with unlimited maximum profit);
🔴 Suitable for players
This is suitable for players who have a deep understanding and research of the ETH volatility surface, maintaining an overall position with +delta, and continuously shorting calls on the near end to generate cash flow and reduce leverage costs.
🆘 Risk control explanation
If there is a significant drop, a 50% loss of premium can trigger a stop loss; if there is a significant rise, the near end has gamma risk, and you can use a smart covered call to roll over.
Going long on ETH, buying calls is too costly in terms of Theta; saving money is the hard truth, give this a try!
⁉️ How to build it
The strategy name is: long call spread (buying a bull call spread strategy); as shown in the figure below, construct a 2-leg options strategy; buy 1 call at $3000 expiring on August 29, and sell 1 call at $3500 expiring on August 29 (initial premium investment of $193, maximum profit of $306, see below for break even);
🔴 Suitable for players
Currently, the smile curve of ETH shows a clear cskew; buying naked calls to go long is very costly in terms of Theta, and the margin for error is not large enough; by using this call spread, we can see that the daily Theta consumption is only $0.004; at the same time, the -Vega exposure is only 0.06; this is very beneficial for controlling greeks in options trading!
🆘 Risk control explanation
If there is a significant drop, a 50% loss of premium can trigger a stop loss, and if there is a short-term surge above $3500, profits can be taken early.
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