You may ask "why did you say BUY when its dumping on me???" I know what I'm talking about, I dont reccomend to others things I dont do myself. It's very simple and its why I recommended to do with mined ETH and not with direct fiat or shorting bitcoin for eth directly.Even if you dont mine it, You see, ETH can only fall, at this current point in time, around $180 in value. Buying the call options they cannot get liquidated. Even if ETH FALLS TO $1 RIGHT NOW IN A GLORIOUS FLASH CRASH, you only go in the red the value you paid for the premium. IT WILL RECOVER, even if it magically went to $1 (impossible mathematically) your options will still be there, in which you would BUY MORE! Its 96% drop to $5, 775% to near all time high. I bet my left foot that it will reach all time high before anything like $5 happens. The floor is just right beneath you, the ceiling, well, technically there isn't one. ETH is a brand new baby piece of technology only really just now being born. I can see a situation that could arise of a market cap and dominance flip that could occur. BTC could dump while at the same time ETH remains still, once BTC bounces ETH just bounces harder. This gains % wise are more lucrative. There's a parabolic expansion to the upside lurking in Ethereum. A catalyst that will see it to 4 digit prices despite what daddy Bitcoin does. There's extreme business logic and technical potential residing in Ethereums platform and developers. Extremely smart individuals with wonderful ideas yet to be exposed and implemented with sharding applications and potential proof of human blockchains and unlimited other potentialities. Dont speculate on the downside in this asset, there isn't much of one. Instead position yourself to be better positioned for the upside to come. In the near future you will cry and kick yourself if you read this post, and did not take my advice seriously. Good luck, happy trading.
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Can you understand this prospective? This strategy can be done automatically with scripts. You dont have to keep margin aside to prevent liquidation with this strategy. You can have the accounts entire margin balance sunk into the call options with 0 available margin left and still rest easy, as the mined eth gets automatically deposited into the account, its available as usable margin. The call options can only go negative 100% so if market continues a decline it's not going to remove anymore margin from balance. You simply have the API run script to automatically place the additional maker buys on the eth calls as the account is automatically funded accordingly. If you have enough Ethereum as margin and are interested on earning potentially alot more with options, selling Eth PUT options can be more rewarding but not as risk free as simply buying puts. There are advanced option strategies that can be implemented with both simultaneously, but that subject is beyond the scope of this particular post. Traders can either short or long, you are either right or wrong. If your switching sides too often you increase the odds of being wrong. This strategy is designed to enable you the chance to still be right, if implemented as described, after the smoke clears and the dust settles, positions that would have otherwise been stopped out, panicked out of or liquidated, become solid profitable investments with healthy return on equity that you can be proud of. If you are not buying eth options for pennies on the dollar, please comment below as to why not? I'm interested in knowing why not.
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I mean as simply buying CALLS. Selling the PUT options are not at risk free as simply buying the CALLS, although selling PUT would be more profitable in premiums as their value decays over time. Selling options is not more of there you think price will go but more of where you bet it WONT go. Let's say in 1 year you think ETH will be $1000, you buy a call for that strike and I am the seller of the same call. If it takes ETH the entire year to get to $1000 and expires at 1,000 at date of expiration, it expires worthless and I as the seller pocket the premium from the decay in time value. On the other hand If ETH is $1,000 6 months into the year and continues to rise, I as the seller could be found in a position of potentially unlimited loss as the value increase potential is technically unlimited. You as the call buyer at any point in time during the remainder of the year can freely exercise the option for profits as desired, but if ETH value increased to $2000 but found it's way back to $1000 before expire, for example, its expires worthless and I still collect profits as the seller. Hope this helps anyone to better understand the options a little better, as there is many different variables involved with them unlike basic futures contracts. I like to be right no matter what happens, while enabling any wrongs to be only temporary until they too are given the chance to be right as well. Got it? If not feel free to message me in private I am willing to help anyone struggling to understand this. Its not easy, if it was everyone would be doing it. I can freely give out my strategies without fear of competition, as the difficulty of implementation and vastness of market, It doesn't matter about being CORRECT about direction of price action. You can predict every market movement correctly and still not have anything to show for it when it's all said and done. What matters more is strategy in opening and closing those trades, and how much you dedicate to the exchange helping provide liquidity. My post only longs on Bitcoin are currently just take profits from a short from way further up, lining the orderbook waiting to be taken by market orders from stop losses and panic traders.
