Constantinople Speculative Trade Thesis

  • Not having a constructive delta view, one should GAMMA hedge the options position, and with that, timing is key. If you can capture a GAMMA scalp BEFORE the fork date due to a price move from ANTICIPATION, and then capture a second GAMMA Scalp AFTER fork date from the REACTION, you could lock in some profits:
  • At this point you can sell-to-close the Long Straddle and get back any remaining premium from the options structure
  • Or ride out the options to expiration and seek a settlement as far away from the strike as possible.
  • Simply sell-to-close the Calls you are long
  • GAMMA Hedge with ETH and lean your delta in the direction you are biased in that moment
  • Sell the new ATM Calls (ie. If you purchase the $150 Calls and we rally $20’s, then you would sell the $170 Calls, legging into this Call Spread for free or even potentially a credit).
  • Simply sell-to-close the Puts you are long
  • GAMMA Hedge with ETH and lean your delta in the direction you are biased in that moment
  • Sell the new ATM Puts (ie. If you purchase the $150 Puts and we sell-off $20’s, then you would sell the $130 Puts, legging into this Put Spread for free or even potentially a credit).

Contacts

About BitOoda

A boutique digital asset investment bank focused on providing innovative and compliant capital markets solutions for institutional clients.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Cryptocurrency: Legit or Scam — Spoiler Alert…the answer is both!

Revisiting the criminal FUD.

Originally published on Instagram

The Bitcoin Matrix Podcast #34 — Michael Goldstein: Everyone’s A Scammer, Praxeology & Advanced…

The community is changing, the world is attracting and popularizing cryptocurrencies, because this…

Providing Staking Liquidity with LP Tokens: The Case for STRP

Genesis Vision January Report and answers to frequently asked questions.

Why Blockchain.io Is Just The Exchange That The Crypto Investors Have Been Waiting For

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
BitOoda

BitOoda

A boutique digital asset investment bank focused on providing innovative and compliant capital markets solutions for institutional clients.

More from Medium

Saving with DeFI — Feb 2021 update

different yields for stabelcoin lending under Compound, AAVE, Venus and Tulip

R.F. Capital Sector Spotlight: Layer 2

ViaBTC Capital Insight丨Market Analysis of Decentralized Stablecoins

ITSA lists RAI Stablecoin in Tokenbase

RAI article cover photo