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How to protect your #Bitcoin profits WITHOUT ever selling your #Bitcoin

1. Buy #Bitcoin @ say $73,000.

2. Let it appreciate to say $300,000.

3. Buy Puts on IBIT (when launched) at $300,000 with following math:

Profit: $227,000.

10% of profits allocated to Puts: $22,700.

4. Scenario 1 - Bitcoin collapses down to 200W moving average - say $80,000. Watch the $22,700 in Puts ride up to $150,000 - $200,000 in profit. SELL the Puts and collect the cash.

Scenario 2 - #Bitcoin hits S Curve and America announces Strategic National Reserve buying 1 Million Bitcoin and Bitcoin goes vertical to say $1m and stabilizes.

You lose $22,700 in the Puts you bought.

But your #Bitcoin is now worth $930,000.

You're hedged both ways.

AND YOU NEVER EVER NEED TO SELL YOUR BITCOIN.

And it works in both ways if you hold ETFs or Cold Storage.

You can always just buy Puts in a brokerage account while having the Bitcoin in your cold storage

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Discussion

modulo 1y ago

When you buy puts, the counterparty you buy the puts from will likely sell #bitcoin short to hedge the puts they sold you

So even though you aren’t selling your #bitcoin you are contributing to the margin and short sellers out there who are selling short

BitcoinStu 1y ago

option 3 bitcoin's price goes sideways while your puts expire, you lose all the premium on the puts, and your bitcoin stack shrinks... then once your puts expire, price crashes and you lose yet more value.

BitcoinStu 1y ago

also where are you getting the money to buy the puts if your bitcoin is in cold storage?

It sounds like you've just watched a 1 hour video on "basics of how options work" but you haven't actually used them before, nor fully thought through the implications.

Options carry risk. You're ignoring all that risk