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Two points: First, the way you phrase it is confusing and generally not how most would refer to that type of position. Better would be 'how I have been short B
by beezle 5y ago
Two points:
First, the way you phrase it is confusing and generally not how most would refer to that type of position. Better would be 'how I have been short Bitcoin for a long time'. Likewise 'I suspect no one offers very long dated put options on bitcoin'
Second, even if there were exchange traded/cleared bitcoin options with very long expirations (say 5 years), you would still have to consider the possibility that the exchange removes the product at a future date, either for lack of volume or other issues. While that might still work in your favor, it would not necessarily imply a bitcoin value approaching zero.
Of note, CME only has bitcoin futures out one year and futures options out three months (with very little volume). The bitcoin ETF BITO has options out to Jan 24 with considerably more volume/open interest. ETFs are not 24/7/365 vehicles but do have the advantage as likely to implode quicker than anything else (see USO)
- techdragon 5y agoYour right it’s a confusing phrase, I was trying to remember the specifics at the time but couldn’t remember the terminology since it’s not something I deal with on a regular basis, thanks for clarifying with the correct terms, I did indeed mean a put option with a very long date in the future. As for removal, as long as I didn’t have to pay if they de-list the option I’d still put it on the books. I’m quite convinced of my position. As for selecting a more short term timeline, I don’t see my short position happening in the next 3 to 5 years based on block mining rewards so I’ll just have to continue waiting and watching for the day it becomes viable to put my own personal “big short” into action on Bitcoin.