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And now imagine it with the ability to write covered puts. The juicy premiums are going to be HUGE when you don't get exercised because everyone thinks bitcoin
by ringaroundthetx 9y ago
And now imagine it with the ability to write covered puts. The juicy premiums are going to be HUGE when you don't get exercised because everyone thinks bitcoin is going to be volatile, and then the one times when your options get exercised you get a lower cost basis!
I want this so bad.
Bitcoin spot market is going to get SPAN margining instead of Reg-T, so the options leverage is going to be amazing, way better than the ridiculous margin requirements for equity options, it is almost unfathomable.
With the CFTC loving it, CBOE and CME Group gearing up for futures and options, and the Winklevoss Twins pushing them hard because they want that ETF, thats how I know bitcoin is just getting started.
This is one of my bullish cases. The entire "but muh volatility" argument goes completely out of the window, after they reinvent hedging.