Assume that the bitcoin cycle plays out close to how it did the last times. Meaning about a 20x from halving in the following 12-18 months. This means you have an incredible return already. However, is that all we can do? Is there a way to increase optionality?
This could also allow you to substitute exposure away from equities and reduce risks, just because we found a more pure play for a potential bull market.
Leveraging without a Margin Call
Brokers let you margin different positions depending on their “risk” assessment. However, it is in the interest of your broker to offer as much margin and leverage as possible. Since most of them are earning on a percentage of total margin volume.
I think buying any of these stocks: 12 stocks to research for the next crypto cycle on margin is a bad idea, just because of the volatility involved.
But I found some Call Options with long expiry that I like. With these, there is no chance of a margin call.
| MSTR | Dec17’21 220 CALL |
| RIOT | Jan21’22 7 CALL |
RiskRatcheting
However what if you don’t want all your positions correlated to Bitcoin or Bitcoin Miners? This is why I’m reviewing also different Web3.0 projects like Melon or The Graph.
In addition to the fundamental development of many altcoins, I think they will receive much more awareness once BTC and ETH have shot through their old all-time-highs.
Options of Crypto Tokens
I’m still in search of long-term options on different cryptocurrencies. But I have not found interesting ones yet. Most are either very short-term or not liquid. I mean, who wants to be a call option seller in this environment, hahah?
If you know of any platform that I might have missed, let me know: [email protected]
Disclaimer: I own call options on MSTR & RIOT, as well as the crypto tokens MLN & GRT
