Bitcoin rose sharply today, hitting a new record high, close to 20,000 US dollars. Judging from the current market trend, the weekly and daily lines continue to strengthen, the 4-hour and 1-hour golden cross, the MACD indicator is located above the zero axis and the golden cross is synchronized. The overall trend has stabilized and rises. 20,000 U.S. metals are in high probability events. If Bitcoin breaks through $20,000 tonight, what should we do?
The first method: 20 times contract long + put option hedging
1. Suppose you use 200 USD to open 20 times leverage to do long
2. At the same time open 2 put options to hedge on BitOffer (40 USD cost)
When Bitcoin rises by US$1,000, the increase will be 5%. 1.
Long with 20 times leverage will make a profit of 100%, which means you will earn US$200.
2. The put option loses the principal, which is US$40,
200-40=US$160 (net profit)
When Bitcoin falls by US$1,000, that is, the decline is 5%. 1. To go long with
20 times leverage, the contract is liquidated and loses
US$ 200. 2. The put option makes a profit of US$2000, and the cost of options is US$40.
3. 2000-200-40 = US$1760 ( Net profit)
The second method: Double open options
1, open 2 call options, the cost is 40 US dollars
2, open 2 put options, the cost 40 US dollars
When Bitcoin rises by 500 US dollars
, 1 and 2 call options make a profit of 1000 US dollars, and
2 put options lose 40 US dollars. 3,
1000-40 US dollars = 960 US dollars
When Bitcoin falls by 500 US dollars
, 1 and 2 put options make a profit of 1000 US dollars, and
2 call options lose 40 US dollars. 3,
1000-40 US dollars = 960 US dollars
When Bitcoin breaks through 20,000 US dollars, using the above two methods, no matter whether Bitcoin continues to skyrocket or quickly hit the market, stable income can be obtained.