1/25 DeFi Options Trading Is Powerful!
There can be unlimited upsideβ¦π
But also unlimited downside π£
Every trader should know how to create these 18 options strategies in @Panoptic_xyz for any crypto asset, any strike, any size:
β€οΈ & rt π
There can be unlimited upsideβ¦π
But also unlimited downside π£
Every trader should know how to create these 18 options strategies in @Panoptic_xyz for any crypto asset, any strike, any size:
β€οΈ & rt π
2/25 In this thread we'll cover:
1. ‡οΈ
2. π
3. π€Έπ½ββοΈ
4. π ββοΈπ΅
5. ππ¦
6. π¦
7. π₯π¦
8. ππ§
9. π¦ΈββοΈπ
10. ‡οΈπ§
11. π¦ΈββοΈπ»
12. π₯π¦
13. π π§
14. βοΈπ§
15. βοΈπ§
16. π¦
17. π¦
18. π¦π¦π¦
1. ‡οΈ
2. π
3. π€Έπ½ββοΈ
4. π ββοΈπ΅
5. ππ¦
6. π¦
7. π₯π¦
8. ππ§
9. π¦ΈββοΈπ
10. ‡οΈπ§
11. π¦ΈββοΈπ»
12. π₯π¦
13. π π§
14. βοΈπ§
15. βοΈπ§
16. π¦
17. π¦
18. π¦π¦π¦
3/25 Think $HEX is worthless?
"Put" your money where your mouth is:
Buy a "put"β€΅οΈ Panoption!
Substantial upside π
Limited downside π
Bearish β¬οΈ
Short LP position
"Put" your money where your mouth is:
Buy a "put"β€΅οΈ Panoption!
Substantial upside π
Limited downside π
Bearish β¬οΈ
Short LP position
4/25 Want to make a "call" that $APE will go up?
Buy a "call"π Panoption!
Unlimited upside π
Limited downside π
Bullish β¬οΈ
Short LP position + long asset
Buy a "call"π Panoption!
Unlimited upside π
Limited downside π
Bullish β¬οΈ
Short LP position + long asset
5/25 "Straddling" the line b/c you can't tell if $BLUR is going to go β¬οΈ or β¬οΈ?
Buy a "straddle"π€Έπ½ββοΈ on Panoptic!
Unlimited upside π
Limited downside π
Delta neutral π«₯
Call + Put (same strike)
Buy a "straddle"π€Έπ½ββοΈ on Panoptic!
Unlimited upside π
Limited downside π
Delta neutral π«₯
Call + Put (same strike)
6/25 Feel like you're being strangled by excessive market volatility on $SHIB?
Buy a "strangle"π ββοΈπ΅ on Panoptic!
Unlimited upside π
Limited downside π
Delta neutral π«₯
Call (higher strike) + Put (lower strike)
Buy a "strangle"π ββοΈπ΅ on Panoptic!
Unlimited upside π
Limited downside π
Delta neutral π«₯
Call (higher strike) + Put (lower strike)
7/25 Feeling a "little" bullish on $UNI?
How about a "jade lizard" ππ¦
Limited upside π
Substantial downside π£
Neutral-to-bullish βοΈ
Short strangle + long OTM call
How about a "jade lizard" ππ¦
Limited upside π
Substantial downside π£
Neutral-to-bullish βοΈ
Short strangle + long OTM call
8/25 A variation of ππ¦ is the "big lizard" π¦
Sell a straddle instead of a strangle on Panoptic!
Useful when you believe the price will hover around the current price.
Limited upside π
Substantial downside π£
Neutral-to-bullish βοΈ
Short straddle + long OTM call
Sell a straddle instead of a strangle on Panoptic!
Useful when you believe the price will hover around the current price.
Limited upside π
Substantial downside π£
Neutral-to-bullish βοΈ
Short straddle + long OTM call
9/25 Think $LINK will stay rangebound?
Float like an "iron butterfly"! π₯π¦
Like a π¦, except you're protected on both sides.
Limited upside π
Limited downside π
Delta neutral π«₯
Short straddle + long strangle
Float like an "iron butterfly"! π₯π¦
Like a π¦, except you're protected on both sides.
Limited upside π
Limited downside π
Delta neutral π«₯
Short straddle + long strangle
10/25 Bullish on $ETH but don't expect a huge surge?
Buy a "call spread" on Panoptic! ππ§
Limited upside π
Limited downside π
Bullish β¬οΈ
Long call (lower strike) + short call (higher strike)
Buy a "call spread" on Panoptic! ππ§
Limited upside π
Limited downside π
Bullish β¬οΈ
Long call (lower strike) + short call (higher strike)
11/25 Are you hoping for a "Better Tomorrow"?
How about a "Super Bull"? π¦ΈββοΈπ
Like a ππ§, but for the more bullish among us.
Limited upside π
Substantial downside π£
Super-bullish β¬οΈβ¬οΈ
Long call spread + short OTM put
How about a "Super Bull"? π¦ΈββοΈπ
Like a ππ§, but for the more bullish among us.
Limited upside π
Substantial downside π£
Super-bullish β¬οΈβ¬οΈ
Long call spread + short OTM put
12/25 Anon "spreading" rumors that $USDC is in trouble, but don't expect a huge drop?
Buy a put "spread" on Panoptic! ‡οΈπ§
Limited upside π
Limited downside π
Bearish β¬οΈ
Long put (higher strike) + short put (lower strike)
Buy a put "spread" on Panoptic! ‡οΈπ§
Limited upside π
Limited downside π
Bearish β¬οΈ
Long put (higher strike) + short put (lower strike)
13/25 Look! Up in the sky! It's a bird! It's a plane!
It's "Super Bear"! π¦ΈββοΈπ»
Like a ‡οΈπ§, but for the more bearish among us.
Limited upside π
Unlimited downside π³
Super-bearish β¬οΈβ¬οΈ
Long put spread + short OTM call
It's "Super Bear"! π¦ΈββοΈπ»
Like a ‡οΈπ§, but for the more bearish among us.
Limited upside π
Unlimited downside π³
Super-bearish β¬οΈβ¬οΈ
Long put spread + short OTM call
14/25 Think an "upcoming announcement" is gonna be a nothingburger? π«π
Take flight with a short "iron condor"! π₯π¦
Limited upside π
Limited downside π
Delta neutral π«₯
Short call spread + short put spread
Take flight with a short "iron condor"! π₯π¦
Limited upside π
Limited downside π
Delta neutral π«₯
Short call spread + short put spread
15/25 Long-term bullish on $ETH but need more capital?
Buy a "call calendar spread" on Panoptic! ππ π§
Limited upside π
Limited downside π
Delta neutral π«₯
Long long-term call + short short-term call (same strike)
Buy a "call calendar spread" on Panoptic! ππ π§
Limited upside π
Limited downside π
Delta neutral π«₯
Long long-term call + short short-term call (same strike)
16/25 Panoptic mimics payoffs from long-term expiries through wide-ranged LP positions.
For example:
β’ Narrow range (r = 1.087) βοΈ 1 day expiry
β’ Wide range (r = 1.6) βοΈ 1 month expiry
(Assuming 100% annual volatility)
For example:
β’ Narrow range (r = 1.087) βοΈ 1 day expiry
β’ Wide range (r = 1.6) βοΈ 1 month expiry
(Assuming 100% annual volatility)
17/25 A variation of π
π§ is the "diagonal spread" βοΈπ§
Also called a "Poor Man's Covered call" β useful when you expect minor price movement.
Limited upside π
Limited downside π
Bullish β¬οΈ
Long long-term call + short short-term call (different strikes)
Also called a "Poor Man's Covered call" β useful when you expect minor price movement.
Limited upside π
Limited downside π
Bullish β¬οΈ
Long long-term call + short short-term call (different strikes)
18/25 Neutral-to-bullish, with a price target for $WBTC in mind?
Buy a "Call Ratio Spread" on Panoptic! πβοΈπ§
Limited upside π
Unlimited downside π³
Neutral-to-bullish βοΈ
1 long call (lower strike) + 2 short calls (higher strike)
Buy a "Call Ratio Spread" on Panoptic! πβοΈπ§
Limited upside π
Unlimited downside π³
Neutral-to-bullish βοΈ
1 long call (lower strike) + 2 short calls (higher strike)
19/25 Expect some small price movement on $LDO but not sure which direction?
Try "BATMAN" π¦
Limited upside π
Unlimited downside π³
Delta neutral π«₯
Call ratio spread + put ratio spread
Try "BATMAN" π¦
Limited upside π
Unlimited downside π³
Delta neutral π«₯
Call ratio spread + put ratio spread
20/25 Want to go long?
A "ZEBRA spread" may be what you're looking for! π¦
A synthetic replacement for longs: ~100 delta position with very low capital requirements.
Unlimited upside π
Limited downside π
Bullish β¬οΈ
Capital efficient πΈ
2 ITM long calls + 1 ATM short call
A "ZEBRA spread" may be what you're looking for! π¦
A synthetic replacement for longs: ~100 delta position with very low capital requirements.
Unlimited upside π
Limited downside π
Bullish β¬οΈ
Capital efficient πΈ
2 ITM long calls + 1 ATM short call
21/25 Bullish, but want to hedge downside tail risk?
Try "ZEEHBS"! π¦π¦π¦
Unlimited upside π
Limited downside π
Delta neutral π«₯
Call ZEBRA spread + put ZEBRA spread, this one is special π€ͺ
Try "ZEEHBS"! π¦π¦π¦
Unlimited upside π
Limited downside π
Delta neutral π«₯
Call ZEBRA spread + put ZEBRA spread, this one is special π€ͺ
22/25 Caveats:
β’ Panoptions are perpetual options with streaming premia rather than upfront premia, so payoff curves may differ from above
β’ Panoption premia depends on a number of factors including the underlying price path and LP width
More on this later π #ResearchBites
β’ Panoptions are perpetual options with streaming premia rather than upfront premia, so payoff curves may differ from above
β’ Panoption premia depends on a number of factors including the underlying price path and LP width
More on this later π #ResearchBites
23/25 Summary:
‡οΈ=Put
π=Call
π€Έπ½ββοΈ=Straddle
π ββοΈπ΅=Strangle
ππ¦=Jade lizard
π¦=Big lizard
π₯π¦=Iron butterfly
ππ§=Call spread
π¦ΈββοΈπ=Super bull
‡οΈπ§=Put spread
π¦ΈββοΈπ»=Super bear
π₯π¦ =Iron condor
π π§=Calendar spread
βοΈπ§=Diagonal spread
βοΈπ§=Ratio spread
π¦=BATS
π¦=ZEBRA
π¦π¦π¦=ZEEHBS
‡οΈ=Put
π=Call
π€Έπ½ββοΈ=Straddle
π ββοΈπ΅=Strangle
ππ¦=Jade lizard
π¦=Big lizard
π₯π¦=Iron butterfly
ππ§=Call spread
π¦ΈββοΈπ=Super bull
‡οΈπ§=Put spread
π¦ΈββοΈπ»=Super bear
π₯π¦ =Iron condor
π π§=Calendar spread
βοΈπ§=Diagonal spread
βοΈπ§=Ratio spread
π¦=BATS
π¦=ZEBRA
π¦π¦π¦=ZEEHBS
24/25 Disclaimer:
π’ None of this should be taken as financial advice.
π’ None of this should be taken as financial advice.
25/25 Comment below with questions.
Follow @Panoptic_xyz and @brandonly1000 for more #ResearchBites and other key updates!
Check out our blog π panoptic.xyz/blog
Star & follow our GitHub repo π github.com/panoptic-labs/β¦
π€ Like & Retweet if you found this thread helpful!
Follow @Panoptic_xyz and @brandonly1000 for more #ResearchBites and other key updates!
Check out our blog π panoptic.xyz/blog
Star & follow our GitHub repo π github.com/panoptic-labs/β¦
π€ Like & Retweet if you found this thread helpful!
https://twitter.com/Panoptic_xyz/status/1628530117118169088
β’ β’ β’
Missing some Tweet in this thread? You can try to
force a refresh
γ
