Option Selling Strategy for Bitcoin: Monthly Strangle Strangle Entry, Adjustment & Exit #CosmicTrade

Theta Gainers • 2 days ago

Original source

What This Video Is About

The speaker shares their 10-year experience with option selling and introduces a strategy for monthly option selling in crypto, highlighting the challenges of high volatility and 24-hour trading.

Major Ideas Discussed

  • The speaker uses the Cosmic option terminal for its ease of use and good user experience.
  • The strategy involves selling options with a high probability of profit (POP) and adjusting trades to maximize profits.
  • Setting up a trade involves selecting the furthest available strikes and matching premiums to create a strangle with a high POP and good range.
  • Adjustment rules involve adjusting trades when the gap between the two running LTP premiums reaches 3x, booking profit on the decayed side, and adjusting by matching the size of the larger one.
  • Take profit (TP) and stop loss (SL) levels are set at 50-70% of the initial credit and the initial credit, respectively, and should not be changed during adjustments.
  • The speaker discusses the possibility of weekly option selling, recommending waiting for a market move before selling options, and provides tips on reducing slippage, such as slicing large orders into smaller parts.

What to Watch Next

Viewers are advised to try out the strategy with small lot sizes and monitor market moves, fees, and slippage to optimize their trades.