Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

[somac.]

3. Sell BTC covered calls

Hint: covered calls are a great way to sell you BTC, rather than the traditional sell at certain price point on normal exchange.

3. I like this. I imagine it is something like this: sell covered calls by posting btc collateral, and actually sell the btc at the strike price on expiry. Do you have any idea where that is possible?

You are correct. Deribit and FTX, are 2 places that I know off the top of my head. And you don't have to always post a full BTC as collateral, you can use margin, but then run risk of margin call.

There is of course the risk of a big price move in one month meaning you will miss out on a lot of capital appreciation.

Of course: a little like selling too early. But you do get advance money in return, after all. No free lunch and all that. I'm going to check the exchanges you suggested to get a feel for the premiums.

something like that.
You can sell 75K bitcoin calls, collect premium.
Then, if btc is lower than 75K at expiration, you keep BOTH your premium cash and your bitcoin, rinse and repeat.
If it is higher that 75K, then somebody basically buys your bitcoin at exactly 75K (plus $ premium that you collected).
The best thing, it is european style options (at least on ledger X, which is US-based), so your bitcoin would not be yanked from under you in the interim.
Not so good-you need to qualify with above $5 mil to sell options at intermediate odd prices (like 57, etc.).
Anybody who gets approved for the regular account could sell at 25, 50, 75K, now probably 100K as well.
I was considering selling some calls when btc was at $42K, very happy so far that I didn't.
EDIT: I checked and Dec 2021 75K calls have ~16K premium while 100K calls ~11K. Wow.
You can sell Dec 31 2021 200K calls and collect 3.8K in premium (on the bid)-exactly the lowest price in 2020.
The worst case scenario-you would sell at 200K plus 3.8K premium.
Lazer eyes.

Great post, Biodom. You're informative as usual. Thank you!

BTW @somac., I've checked FTX and they only seem to deal in futures - not options. Or maybe I have to sign up to see that?

FTX have the shitist UI ever (bit of an exaggeration). It took me a while to work out where their options were too, and they don't display an options chain either, you have to request a quote. Works well though, however, their premiums are a little lower. Here's a link.

https://ftx.com/options

And here's some more info on how the hell to get to that link and what the deal with finding the options prices are.

https://bitcointalk.org/index.php?topic=5316872.msg56334351#msg56334351

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[Torque]

"Deficits don't matter."
"A college education is the only way to make it in this world."
"401Ks are the key to building retirement wealth."
"Rates going to zero, or even negative, are not a problem."
"Stocks can only go up."
"We can keep printing money forever, we own the printing press."
"Universal Basic Income will solve all of our problems."
"Bitcoin is a tool for criminals and drug dealers, a fraud, a scam, baby-brains squared...and it's going to zero."

[somac.]

"Deficits don't matter."
"A college education is the only way to make it in this world."
"401Ks are the key to building retirement wealth."
"Rates going to zero, or even negative, are not a problem."
"Stocks can only go up."
"We can keep printing money forever, we own the printing press."
"Universal Basic Income will solve all of our problems."
"Bitcoin is a tool for criminals and drug dealers, a fraud, a scam, baby-brains squared...and it's going to zero."

Don't forget the "trickle-down effect". That's why the wealth divide is getting better.... Oh wait!

[cAPSLOCK]

Yup. There goes 57k.

I did pop by a bitcoin ATM and sold $1k at 55 yesterday. Mostly to see that the process worked and to feel some crispy fiat. Looks like I may have sold at the bottom again. :-)

Not sure i would call 55k the bottom.

[sirazimuth]

"Deficits don't matter."
"A college education is the only way to make it in this world."
"401Ks are the key to building retirement wealth."
"Rates going to zero, or even negative, are not a problem."
"Stocks can only go up."
"We can keep printing money forever, we own the printing press."
"Universal Basic Income will solve all of our problems."
"Bitcoin is a tool for criminals and drug dealers, a fraud, a scam, baby-brains squared...and it's going to zero."

Don't forget the "trickle-down effect". That's why the wealth divide is getting better.... Oh wait!

Speaking of lies in general...Don't forget the biggest, grandiose lie of all, sold to mankind's credulous stupidity for past 2000 years...
The almighty magic invisible sky fairy... pick your flavor ... many available.

GO BITCOIN

[lightfoot]

Not sure i would call 55k the bottom.

We shall, as they say, see....

Meantime ordering some internal and external upgrades to the homestead. Not jumping into another wealth bracket, just doing all those little things I always wanted to do and having someone ELSE do them. Stimulate the economy and all.

Hey way, in "trickle down" economics I am the um..... trickler......

[Gyrsur]

Laser Eyes... Sha La La... Sha La La...
Laser Eyes...

https://youtu.be/zOrZ-nCp-_U

[HairyMaclairy]

Good morning Bitcoinland.

Here we go again... another ATH ($57554 Stamp), another $1.4k mini-correction and another bounce halfway back up... currently $56751USD/$71570CAD (Bitcoinaverage).

This is a routine I can learn to love. In the time it took to get the vendor's signature on the purchase-sale contract, my Bitcoins had risen in value more than the cost of our piece of paradise. Made it official yesterday.

Go Bitcoin go.

The number of WOs selling is too damn high.

Cause land, cause gift and like going to banks, cause its just a tiny fraction...

Pffff... I'm considering (-a car-). And that would be my tiny fraction.

You can't drive around in money (including Bitcoin), nor can you stock it with fish and hang a hammock beside it, nor build a track and keep cattle on it.

Spending tiny fractions rocks.

Could not have happened to a nicer bloke.  Congrats Jimbo. 

[HairyMaclairy]

already over 2x page parity 

It will reach 10x page parity before 2023 I bet.

We are aiming for post parity. 

[Crusherxy85]

Red sunday incoming

[AlcoHoDL]

"Not your keys, not your Bitcoin."

My coins are not getting out of my deep-freezing cold storage unless there's a really good reason to.

My current salary is more than enough to cover my living expenses, and even some fun part of life. For me, Bitcoin covers two things (in order of importance):

1. Psychological peace of mind that I can do/buy whatever I need, when I need it.
2. Funding my hobbies and fun side of life, without having to look at the price tag before buying the stuff I want.

Bitcoin value has just surpassed the level that enables the above to start happening. Why risk ownership of my Bitcoin, just to earn some interest, and paying it dearly by not being able to sleep at night, worrying if/when celsius.network will go south and take my coins with it? Bitcoin's main benefit is taking out the middleman between the owner and his wealth. Why would I want to add a middleman? Risking messing up something near-100% certain does not make any sense to me. There's no "free lunch" in this life.

"Not your keys, not your Bitcoin."

Edit: Corrected typo.

[Poker Player]

Red sunday incoming

Do you have any rational argument to back up what you say or is this just a hunch?

[micky123]

"Not your keys, not your Bitcoin."

My coins are not getting out of my deep-freezing cold storage unless there's a really good reason to.

My current salary is more than enough to cover my living expenses, and even some fun part of life. For me, Bitcoin covers two things (in order of importance):

1. Psychological peace of mind that I can do/buy whatever I need, when I need it.
2. Funding my hobbies and fun side of life, without having to look at the price tag before buying the stuff I want.

Bitcoin value has just surpassed the level that enables the above to start happening. Why risk ownership of my Bitcoin, just to earn some interest, and paying it dearly by not being able to sleep at night, worrying if/when celcius.network will go south and take my coins with it? Bitcoin's main benefit is taking out the middleman between the owner and his wealth. Why would I want to add a middleman? Risking messing up something near-100% certain does not make any sense to me. There's no "free lunch" in this life.

"Not your keys, not your Bitcoin."

Wow, i could swear i was looking at a mirror right now! The psychological peace of mind resonates with me totally! I also fund my diecast hobby without having to worry about running out of money!

[El duderino_]

Red sunday incoming

Do you have any rational argument to back up what you say or is this just a hunch?

Hé doesn’t have ....

[dieselmeister]

I was given a few options on twitter for places where you can get loans of fiat for BTC collateral.

Closest I've seen is Hodl Hodl saying they would lend stablecoins and "Blockfi gives usd loans using btc as collateral".

Both things I will look into when going to buy property.

On nexo you get a loan for 11.9 interest. You can go down to 5.9 when you buy some shit coin. Nexo coin.
BTC are at 60% colleteral. But as I saw, the loan must be paid in 1 year. I am not sure about this. No fixed monthly rate necessary.
But 11.9 is heavy. For property maybe you get a normal bank loan for under 1 %.

[btcbeliever]

"Not your keys, not your Bitcoin."

My coins are not getting out of my deep-freezing cold storage unless there's a really good reason to.

My current salary is more than enough to cover my living expenses, and even some fun part of life. For me, Bitcoin covers two things (in order of importance):

1. Psychological peace of mind that I can do/buy whatever I need, when I need it.
2. Funding my hobbies and fun side of life, without having to look at the price tag before buying the stuff I want.

Bitcoin value has just surpassed the level that enables the above to start happening. Why risk ownership of my Bitcoin, just to earn some interest, and paying it dearly by not being able to sleep at night, worrying if/when celsius.network will go south and take my coins with it? Bitcoin's main benefit is taking out the middleman between the owner and his wealth. Why would I want to add a middleman? Risking messing up something near-100% certain does not make any sense to me. There's no "free lunch" in this life.

"Not your keys, not your Bitcoin."

Edit: Corrected typo.

If you have at least double the btc you need to attain your objective, why not earn 4.5% on your btc with half, or even 1/10th?

Do you hold a bit of fiat savings as well to cover you through the downcycles?  If so, at least get 12.5% return on your fiat-pegged stablecoin.

Nothing is 100% safe in this world, even cold storage.  Diversify.

[dieselmeister]

Good Morning BTC Land. Saw this night a bigger dip. Bought my first long at the bottom and got it closed when btc hit 57k... I made corn out of it, without having fiat at all.
But it's stressful. Don't know if trading is something for me.

Read the option thingy... But 5 million to be approved... This is a long long way for me.
Lending is bad here in Germany. We loose our tax freedom after 1 year for every lend btc. Lend btc are tax free after 10 years than.
So it's a approach for the future, when lending is more secured.

Looked as I mentioned on nexo, they claim to be secured by 100 million (Switzerland) but I don't trust that for now.

[virasog]

What's wrong with mainstream media ? Are they falsely reporting these opinion about bitcoin 

[AlcoHoDL]

Red sunday incoming

Do you have any rational argument to back up what you say or is this just a hunch?

Hé doesn’t have ....

He couldn't have...

...because it won't happen. 

Enjoy da pamp.

[friends1980]

Weekend dumps are so 2020. 2021 is all about weekend pumps.