Team Gamma Leader’s Exclusive Strategy Sharing
Andrew (@ThinkingGreeks) here! Team leader of the Team-Gamma team. If you are interested, please join my team, 3rd in the team competition currently: https://t.signalplus.com/activities/deribit/competition?open=teamInvite&teamID=10003665
With this brief article, I will share with you some of my options trading techniques that I’m using during this competition.
The competition is based on volume, so the main goal is to obviously generate the highest amount of volume. The key threshold is 3M. Reaching that level will allow participants to have a chance to win the grand prize in the post-competition lottery.
💰 So how am I trading in this bullish crypto environment?
First of all, I rely a lot on the vol surface.
SignalPlus (t.signalplus.com) provides this instrument for free.
Vol surface can help you spot places where vol is cheap or expensive and create a strategy based on that information.
When skew favor calls , I like to collect premium. And if I’m bullish and wanna get upside exposure, I try to do it by minimizing the cost of the premium paid.
📖 So here’s what I’m doing:
- SELLING OTM CALLs.
I like to sell euphoria more than fear, and this is the perfect moment to do it. I like to sell mid term calls, like 20 to 30 days away, sometimes short term calls like 2–3 days, but only if I see IV is particularly high in that maturity. 15 delta and below are my preferences in a high IV environment.
-CREDIT SPREADS.
Selling naked calls has quite an impact on margin, especially if you sell short term calls which are very sensitive to gamma. So spreads are an effective way to collect premiums in a safer way when IV is expensive. With this strategy, you can increase the size of trade and define the risk.
- BULLISH DIAGONALS.
I buy the longer expiration date call and sells a call with the shorter expiration date and higher strike price. If you bullish this is an effective strategy to reduce the cost of the premium. There are moments where the vol surface tells you that this strategy is optimal, maybe because long term IV is very low and short term quite high or the same. But in any case, you can apply this strategy at any moment and hopefully entirely finance the premium you paid.
- BULLISH CALL SPREAD.
Probably the easiest and best strategy you can use. Defined risk, upside exposure.
I’m kinda always on the sell side, but when I buy I try to do it efficiently by minimizing the cost of my options. And that’s what really makes options shine. They are the safest and most effective instruments to trade ANY market.
🎓 Last tips for the Trading Contest:
(sign up and get 1 BTC option: https://t.signalplus.com/activities/deribit)
- Aim for a trading volume of 3 million USDC to compete for the biggest reward. — Control your margin: try to keep it under 30% — Prefer strategies with defined risk — Utilize SignalPlus “smart dealing” to effectively improve trading efficiency and safety
Good Luck
Andrew
To all our dear friends & readers — what better way to celebrate the (early) return of the bull market with SignalPlus’s Option Trading Competition co-hosted with Deribit! Simply scan the Telegram QR Code below to join our community and get involved! Don’t miss out on the opportunity to win up to 100,000 USDC in shared prizes across both Individual & Team Competitions, as well as to some Lucky-Draw Winners! LFG!
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