Introduction
In February 2022, the first Hegic One-click Option Strategies such as Straddle, Strap, and Strip were released.
Later in April 2022, three more one-click option strategies were shipped: Strangle, Bull Call Spread, and Bear Put Spread.
Today, the third batch of Hegic’s one-click option strategies is introduced. Say hi to 🦅 Long Condor, 🦋 Long Butterfly, 🐻 Bear Call Spread, and 🐂 Bull Put Spread.
Bullish, Bearish, High Volatility, and …?
Before today’s release, you had the opportunity to choose from bullish, bearish, and high volatility strategies. Something was missing…
Exactly! Low Volatility one-click strategies with which you can earn in low vol markets and profit when the market price does not change significantly.
TL;DR New One-click Option Strategies (Low Volatility)
- Make profits when market volatility is low
- Immediately in-the-money (in profits) after purchasing a strategy
- P&L for new one-click option strategies is distributed automatically
Keep in mind that with these new one-click option strategies you will have to wait until expiration to make a profit (if any). You won’t be able to change the parameters of the active strategy or exercise it before the expiration.
New One-Click Option Strategies
🦅 Long Condor = Sell 10% OTM Call + 10% OTM Put and Buy 20% OTM Call + 20% OTM Put (or buy 30% OTM Call + 30% OTM Put)
The Long Condor is a strategy that helps you to make a bet on low volatility: that the price of an asset won’t rise or fall significantly in either direction during the period of holding.
Instead of being bullish or bearish about the future price, you can have the following reasoning when buying it: “I don’t care what the price will be, but if it won’t change significantly from current levels in either direction during the period of holding the Long Condor, I win.”
The Long Condor is an optimal strategy when the price is moving within the ~10% range. The profit zone for this strategy is the opposite of a Strangle: you make profits when the price moves within the 10% range, you lose money if the price moves up or down from the 10% range.
Low Volatility Bet: Long Condor vs. High Volatility Bet: Strangle
Long Condor (Low Volatility bet):
- Maximum profits after the purchase of the strategy
- Potential losses if the price rises or falls by more than 10%
Strangle (High Volatility bet):
- Losses (premiums paid) at the purchase of the strategy
- Maximum profits increase when the price rises or falls by more than 10%
🦅 1x ETH Long Condor 20% Example
- 7 Days: Max. Profit +15 USDC, Max. Loss -110 USDC
- 30 Days: Max. Profit +37 USDC, Max. Loss -88 USDC
🦅 1x ETH Long Condor 30% Example
- 7 Days: Max. Profit +19 USDC, Max. Loss -231 USDC
- 30 Days: Max. Profit +61 USDC, Max. Loss -190 USDC
🦋 Long Butterfly = Sell ATM Call + ATM Put and Buy OTM Call + OTM Put (10%, 20% or 30% OTM)
The Long Butterfly is a strategy that helps you to make a bet on low volatility: that the price of an asset won’t rise or fall significantly in either direction during the period of holding.
Instead of being bullish or bearish about the future price, you can have the following reasoning when buying it: “I don’t care what the price will be, but if it doesn’t change significantly from current levels in either direction during the period of holding the Long Butterfly, I win.”
The Long Butterfly is an optimal strategy when the price doesn’t rise or fall during the period of holding. The profit zone for this strategy is the opposite of a Straddle: you make profits when the price doesn’t change, and you lose when there is volatility with regards to the market price at the moment of buying the Long Butterfly.
With the Long Butterfly, you have higher premiums received for ATM options you sell in comparison to the total amount of premiums for OTM options you sell when you buy the Long Condor.
Low Volatility Bet: Long Butterfly vs. High Volatility Bet: Straddle
Long Butterfly (Low Volatility bet):
- Maximum profits after the purchase of the strategy
- Potential losses if the price changes in either direction
Straddle (High Volatility bet):
- Losses (premiums paid) at the purchase of the strategy
- Maximum profits increase when the price rises or falls
🦋 1x ETH Long Butterfly 10% Example
- 7 Days: Max. Profit +80 USDC, Max. Loss -45 USDC
- 30 Days: Max. Profit +96 USDC, Max. Loss -29 USDC
🦋 1x ETH Long Butterfly 20% Example
- 7 Days: Max. Profit +96 USDC, Max. Loss -155 USDC
- 30 Days: Max. Profit +134 USDC, Max. Loss -117 USDC
🦋 1x ETH Long Butterfly 30% Example
- 7 Days: Max. Profit +100 USDC, Max. Loss -276 USDC
- 30 Days: Max. Profit +157 USDC, Max. Loss -219 USDC
🐻 Bear Call Spread = Sell ATM Call + Buy OTM Call
The Bear Call Spread is a strategy that helps you to make a bet on a local price drop and earn profits if the price doesn’t rise.
The Bear Call Spread is an optimal strategy when the price falls or does not change much during the period of holding. The profit zone for this strategy looks like a profit zone for the Bear Put Spread. The key difference is that with the Bear Call Spread you are immediately in profits after purchasing the strategy and don’t need to wait for a price drop.
🐻 1x ETH Bear Call Spread 10% Example
- 7 Days: Max. Profit +41 USDC, Max. Loss -85 USDC
- 30 Days: Max. Profit +47 USDC, Max. Loss -78 USDC
🐻 1x ETH Bear Call Spread 20% Example
- 7 Days: Max. Profit +48 USDC, Max. Loss -202 USDC
- 30 Days: Max. Profit +67 USDC, Max. Loss -184 USDC
🐻 1x ETH Bear Call Spread 30% Example
- 7 Days: Max. Profit +51 USDC, Max. Loss -325 USDC
- 30 Days: Max. Profit +78 USDC, Max. Loss -298 USDC
🐂 Bull Put Spread = Sell ATM Put + Buy OTM Put
The Bull Put Spread is a strategy that helps you to make a bet on a local price rise and earn profits if the price doesn’t fall.
The Bull Put Spread is an optimal strategy when the price rises or does not change during the period of holding. The profit zone for this strategy looks like a profit zone for the Bull Call Spread. The key difference is that with the Bull Put Spread you are immediately in profits after purchasing the strategy and don’t need to wait for a price rise.
🐂 1x ETH Bull Put Spread 10% Example
- 7 Days: Max. Profit +40 USDC, Max. Loss -86 USDC
- 30 Days: Max. Profit +49 USDC, Max. Loss -76 USDC
🐂 1x ETH Bull Put Spread 20% Example
- 7 Days: Max. Profit +47 USDC, Max. Loss -203 USDC
- 30 Days: Max. Profit +67 USDC, Max. Loss -184 USDC
🐂 1x ETH Bull Put Spread 30% Example
- 7 Days: Max. Profit +49 USDC, Max. Loss -327 USDC
- 30 Days: Max. Profit +79 USDC, Max. Loss -297 USDC
Explore All Options 🌊🏄♀️
For betting on rising volatility use:
⚡️ ATM / OTM Calls and Puts
⚡️ Straddle
⚡️ Strangle
🐂 Bull Call Spread
🐻 Bear Put Spread
🐂 Strap
🐻 Strip
And starting today, for betting on low volatility use:
🦅 ️Long Condor
🦋 Long Butterfly
🐻 Bear Call Spread
🐂 Bull Put Spread
Start playing with low volatility one-click option strategies today!
Join Hegic Discord → 🌁#hardcore-beta and share your feedback about the new one-click option strategies or anything else related to Hegic HardCore.
Enjoy one-click options trading on Hegic,
Molly Wintermute
7/8/22
Attention: Live in Beta
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