A week ago (1/3/19), I wrote a piece on RISK MANAGEMENT recommending purchasing a March Fence ( aka
a collar) for firms that are long ETH in their inventory. The trade was to buy the H $100 puts and sell the H $250 calls against it. When we sent out this report last week, the market for the fence was -8/8 (worth flat premium). Today, the market 0/16 (worth $8 - put premium). The value of this fence went from flat to $8. You potentially could have hedged ~$8 (less fees) to offset the ~$20 of losses incurred today by this ETH selloff.
if you have any follow-up questions or want to talk through this trade step-by-step, please give us a call and we can continue to help educate you in how to PRESERVE CAPITAL.
Founder and CEO
Executive VP of Institutional Sales
. Ilya Kurland
Chief Derivatives Strategist
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