1.Combination strategy of cryptocurrency options and digital coins themselves
1）Short position combination of BTC long position and BTC subscription option
In Figure a), the trading portfolio consists of a long position (purchasing) of a BTC's own long position (purchase) and 1000 BTC's call options, where the long position of the BTC itself protects the investor from avoiding a sharp price due to BTC The loss caused by the rise;
2）BTC short position combined with BTC subscription option long position
In Figure b), the trading portfolio consists of a short position of 1 BTC itself plus 1000 long positions of BTC call options, and its profit status is opposite to that of Figure a);
3）BTC long position and BTC put option long position combination
In Figure c), the trading portfolio contains 1,000 long positions in the BTC put option and a long position in the BTC itself. This trading strategy is also called a protection bearish strategy.
2.Short position combination of BTC short position and BTC put option
In Figure d), the trading portfolio consists of a short position of 1,000 BTC put options and a short position of one BTC itself. The profitability of this trading strategy is opposite to that of Figure c).
3.Straddle combination strategy
A straddle combination buys a call option and a put option with the same maturity date and the same strike price. The form of profit is shown in the figure:
Analysis: When the option expires, if the price of the subject matter is close to the exercise price of the option of 4000, the straddle combination will result in a loss, but when the price of the subject matter is sufficiently large in any direction, the straddle combination will bring Significant gains.
4.Lex combination strategy
The Lexus combination buys call options and put options with the same maturity date and different strike price. The form of profit is shown in the figure:
Analysis: The Lexic combination is similar to the straddle combination, except for the difference in the exercise price. Compared to the straddle combination, the Lexic combination requires more changes to be profitable, but when the target price is between the intermediate price of 4000~6000 (k1~k2), the loss of the Lex combination will be smaller.
5.Bull market differential strategy
1）The bull market spread can be obtained by buying a call option with a certain strike price and selling a call option with a higher strike price, and the maturity date is the same. For example, if you buy 1000 copies of “BTC-3M-C-4000” and sell 1000 copies of “BTC-3M-C-6000”, the profit form is as shown:
Analysis: If the BTC price performs well, that is, the price rises and is higher than the higher strike price in the portfolio, the return is the price difference between the two strike prices k1 and k2, that is, k2-k1; if the BTC price is at the two execution rights on the due date Between the prices, then the return is the expiring BTC price -k1; if the BTC price is lower than the lower strike price on the maturity date, the bullish spread has a return of zero.
6.The bull market spread can also consist of buying a put option with a lower strike price and a put option selling a higher strike price, such as buying 1,000 copies of "BTC-3 M-P-4000" and selling 1000 copies. “BTC-3 M-P-6000”, the profit form is as shown:
Analysis: Unlike the use of call options to construct a bullish spread, the use of put options to construct a bullish spread will give investors a positive cash flow (ignoring royalties) with a negative or zero return.
7.Bear market spread strategy
Compared with the bull market price difference, the bear market spread limits the upper limit of profit and also controls the loss.
8.The bear market spread can be constructed by buying a put option with a strike price k2 and selling a put option with another strike price k1, such as buying 1000 copies of "BTC-3 M-P-6000" And sell 1000 copies of "BTC-3 M-P-4000", the profit form is as follows:
Analysis: When the BTC price is greater than the higher exercise price k2, the return is 0; when the BTC price is lower than k1, the return is k2-k1; when the BTC price is between the strike price, the return is k2-expired BTC price. The profit of the trading strategy is equal to the return minus the initial cost.
9.The bear market spread can also be made by buying a call option with a higher strike price and selling a call option with a lower strike price, such as buying 1000 copies of "BTC-3M-C-6000" and selling 1000. The "BTC-3M-P-4000", the profit form is as shown:
Analysis: The bear market spread strategy consisting of call options has a cash flow inflow (ignoring the premium).