Put Options spiking up like crazy in the past 24 hours on @Delta_Exchange
WHY??
AND HOW CAN YOU PREDICT THESE SORT OF MOVES AND MAKE 10-20-100x PROFIT?
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Thread 1/8
WHY??
AND HOW CAN YOU PREDICT THESE SORT OF MOVES AND MAKE 10-20-100x PROFIT?
Type "@threadreaderapp unroll" to read this thread easily
Thread 1/8
Last few days were of sustained upmoves in #BTC #Etherum #BNB etc, with all these #cryptos breaking out of resistances and reclaiming supports
This lead to people shorting puts and getting out of bearish positions and buying/going long
2/8
This lead to people shorting puts and getting out of bearish positions and buying/going long
2/8
This caused a skew in risk premium pricing with markets pricing in too little downside risk
One look at the option chain would even make it seem like we're just headed for the moon
However when the downside came, it all imploded and would've killed many with long positions
3/8
One look at the option chain would even make it seem like we're just headed for the moon
However when the downside came, it all imploded and would've killed many with long positions
3/8
How can you predict and make profit?
Small profits can be made by going with the herd
But life changing money only comes from where nobody is looking
Because when the tide changes in your direction, away from the herd, that is when it will be a 10-20-100x trade
4/8
Small profits can be made by going with the herd
But life changing money only comes from where nobody is looking
Because when the tide changes in your direction, away from the herd, that is when it will be a 10-20-100x trade
4/8
"Be greedy when others are fearful and be fearful when others are greedy"
Quote by Warren Buffet also drives similar logic
Option chains are where all the magic lies,
It is the combined view of every market participant.
5/8
Quote by Warren Buffet also drives similar logic
Option chains are where all the magic lies,
It is the combined view of every market participant.
5/8
If you see a skew anywhere, like puts being underpriced, then if a downmove comes,
All the people who had shorted puts will be hitting their SLs or being liquidated
And as the longs get liquidated, shorts will start to build
That is when a downmove will commence
6/8
All the people who had shorted puts will be hitting their SLs or being liquidated
And as the longs get liquidated, shorts will start to build
That is when a downmove will commence
6/8
If a support breaks, it will lead to further downmove, more liquidations, and ultimately a big deathmove.
Deathmove for everyone else,
But not you,
You took the risk of being different from others.
And when they change their views, and the market goes in your direction
7/8
Deathmove for everyone else,
But not you,
You took the risk of being different from others.
And when they change their views, and the market goes in your direction
7/8
That is when you will have made your multibagger life changing profit, since you bought those puts so cheap
And they'll gain value so quickly, aided by stoploss hunting, liquidations, and freak trades
That is when you'll be seeing gains like this
8/8
And they'll gain value so quickly, aided by stoploss hunting, liquidations, and freak trades
That is when you'll be seeing gains like this
8/8
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