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Variant Profile picture
Variant
@ResearchVariant
#BTC | DeFi | Life Enjoyer
Jerome Ku Profile picture 📚 Profile picture 3 subscribed
Sep 23, 2022 • 13 tweets • 5 min read
1/ Here's how I use 5x leverage to earn ~28% APY without any risk of liquidation.

Step by Step. 👇 2/ The set up:

Right now, the perp is trading below spot. This means you get paid carry (interest) to be long perpetual.

Also, rates on borrowing spot continue to be lower than the yield of being long perpetual
Jun 9, 2022 • 12 tweets • 5 min read
1/ We have seen a few instances lately where traders have blocked 1x2's on @tradeparadigm.

People seem intrigued by this trade, so I'll quickly break how you profit using this strategy.

We will also dive into "why" someone would trade this! 👇🧵 Image 2/ First of all, here is the trade that came across a few days ago on @tradeparadigm.

500x BTC 24Jun 25k/28k 1x2 put ratio sold (buying 2x 25k leg).

Jun 2, 2022 • 5 tweets • 1 min read
1/ Off-Topic: On a conference call, bored, so I decided to research "Blue Zones."

Look into Ikaria, Greece. It's a blue zone, which means it has a massive amount of centenarians.

After all, what's wealth if you're not healthy enough to enjoy it. Image 2/ Diet is obviously key. What I found interesting was that they eat a spoonful of local honey almost every day. Which in some studies has been shown to lower rates of dementia.
May 24, 2022 • 4 tweets • 1 min read
Interestingly, even though $SPX has crashed below 4k first the first time since March 2021, the VIX continues to fall as well. Now sitting 5 points below one-month realized vol. Image 2/ GS: "Far from panic. Bottom-seeking investors looking for a sign of capitulation will have
na hard time finding it in equity option markets. In addition to low vol risk premium, index skew has fallen sharply (Exhibit 15),
May 24, 2022 • 11 tweets • 4 min read
Gm internet friends! Some random news/market data for you all on this fine Tuesday.

First up we have hedge funds puking growth. 2/ The illustrious - and not at all criminal- Christine Lagard has resolved to out hawk Jpow in what's now being called "Battle of the False Hawks." (by me alone.)

Her blog post on the ECB website might have put in a top for USD atm, according to Bloomberg.
May 23, 2022 • 10 tweets • 5 min read
1/ I've been using @laevitas1 V2 beta!

When this goes live it will be the most in-depth (and best) tool on the planet for Crypto Options.

Game Changer! Check it out. 👇 2/ Say you wanted to do some analysis on your preferred strategy.

Just choose one, or import your position via CVS.
Mar 17, 2022 • 29 tweets • 6 min read
1/ Every house needs a solid foundation, the following thread is nothing revolutionary or even particularly interesting, but we need to define the foundation for the Option information we will cover in the future.

Fair warning, these threads will not be for everyone.🧵 1a/ We will be covering a lot of interesting things over the course of the next few months. I had to dust off some old textbooks and watch a few youtube videos, but I think it will be worth it.
Mar 16, 2022 • 7 tweets • 3 min read
Getting short front end vol.

See you all on the other side.
Mar 11, 2022 • 14 tweets • 4 min read
1/ Inspiration has struck and she hath struck with fury. I think I am going to do a “mini course” mostly to do with Options. ⚡️

This is really a selfish endeavor in that I want to understand these things better myself.

“If you want to master something, teach it.” @profgernman 2/ Ideas (rough syllabus):

Pricing Deterministic Payoffs
Model Independent Relations
Risk Neutral Pricing
Binomial Tree pricing
Brownian Motion
Stochastic integral
Black Scholes
Currency Options
Stochastic Vol
Exotics
Static Hedging
etc.

That should keep me busy for a while.
Mar 8, 2022 • 9 tweets • 3 min read
1/ I recently had the pleasure of asking @tradeparadigm founder Anand Gomes a few questions.

His answers were incredibly insightful so I recommend reading the entire thing, but I'll also highlight a few things below! 🧵
variantresearch.substack.com/p/an-interview… 2/ I think its a common misconceptions that you have to be a massive whale or institution to trade on @tradeparadigm.

But I learned that in reality it only takes a notional of 25 BTC or 250 ETH per block to execute on @DeribitExchange.
Nov 27, 2021 • 27 tweets • 6 min read
1/ The word inflation gets thrown around quite a bit these days but I don't know if most people actually understand it. I went to school for finance and I still don't know that I understand it.

This thread is my attempt to grasp the illusive and often misused concept.

(Part I) 2/ I recently listened to a @MacroVoices podcast with Jeff Booth of Alhambra Research, and while I don't agree with everything he said, his arguments were compelling.

I will walk you through a few key points.

(From here on out, Jeff Booth is talking.)
Oct 16, 2021 • 16 tweets • 7 min read
1/ Saturday thread! 🧵

Yesterday I put out a poll and it seems you want another short thread on Options, I am happy to oblige. I was looking forward to writing on the repo market, T-bills, and the debt ceiling, but its fine. I'm not mad about it. 😏

Today lets look at Skew. Image 2/ First things first, I finished Squid Games and it was great, loved it. Secondly, go read this thread on the gamma bands, in it I explain IV, and you need to know what that is to understand skew.
Oct 11, 2021 • 11 tweets • 5 min read
1/ This is a great thread on how MM's and Funds move markets just by hedging their deltas using Option strategies. I suggest you read it.

Today, I wanted to give you the TLDR of how the option strategy they use works using #BTC as our underlying. 🧵👇

2/ This structure is called a seagull and its actually pretty simple.

Imagine you are a fund exposed to #btc (in your case you hodl .5 #BTC for your father and .5 #BTC for your mother.) You wouldn't want to lose that money would you? So you think, lets buy some insurance.
Oct 9, 2021 • 25 tweets • 7 min read
1/ Today is Saturday and that means its Thread day.🧵

I wanted to venture from the beaten path of options for a moment and write about something that I think will be another building block in the fortress that is Defi.

So today we are going to talk about Interest Rate Swaps. 2/ I’ve been thinking about creating decentralized Interest rates swaps (IRS) or a structured product for a while now. IRS’s allow one to swap a variable interest rate for a fixed interest rate. This is intriguing due to the astronomical volatility in defi interest rates (IR).
Oct 7, 2021 • 11 tweets • 4 min read
1/ Gm everyone. Looks like we at least have a short term debt deal reached, I know, everyone is shocked. 😏

2/ #BTC led yesterday but seems to be taking a breather. I still expect Q4 to be Uponly. Due to petrodollar/reserve currency mechanics the US simply wont default, liquidity will find its way into the system one way or another. P/C ratio over the last 24 hours is reflecting this. Image
Sep 23, 2021 • 26 tweets • 9 min read
1/ I wanted to do something a little different, so today @Mtrl_Scientist is going to share his recent findings on the Binance options market with us. 🧵

Grab some coffee, this one is really good!👇 2/ Binance Options Analysis by @Mtrl_Scientist

After following the Gamestop saga late last year, I’ve realized how much options can move the underlying in traditional markets.
Sep 11, 2021 • 15 tweets • 7 min read
1/ Saturday thread 🧵- Skew

Gm everyone! I bailed on the thread last week because I was on holiday, but today I am back and I want to briefly cover "skew".

Lets get into it. 👇 2/ To understand skew, you first need to understand volatility. So go back to my threads on the gamma bands, or vega if you need a refresher.

Aug 28, 2021 • 18 tweets • 7 min read
2/ I think we all know how to buy and sell a call. But, did you know you can do both at the same time in what's called a spread, I know, mind blown! Anyway, if you were bullish on, lets say #BTC, you could buy a 55k call and sell the 60k call. This would give you a "Call Spread". 3/ Lets break it down. In the image below I have put on a 55k call. If we look at the greeks we see I have a .36 delta, -57.38 Theta, and 81.79 Vega. Now that you have read all my threads over the past couple weeks you should know what that means, right? 😊 Image
Aug 21, 2021 • 16 tweets • 7 min read
1/ Saturday thread!🧵

Today I briefly want to talk about Implied Volatility and how the greek Vega affects option prices.

Check it out! 👇👀 2/ Really quickly lets recap, IV (implied volatility) is expressed in a 1 stdev move. This is an annual number, so if IV is 50% and $BTC was trading at $40,000k we would expect bitcoin to be trading between $60k and $20k within the year.
Aug 14, 2021 • 17 tweets • 7 min read
1/ Ok, to carry on with our Saturday Option threads, lets talk about the greek THETA. Not to be confused with $THETA the token.

Theta is really important to understand, simply put, its the time value of an Option, let me explain... Image 2/ To visualize this, lets say an option contract is worth $100 dollars, $30 of the $100 might be Theta (time value). If you are a buyer, as time passes you will pay that $30 to the seller, if you are the seller you will collect that $30 over the life of the option.
Aug 7, 2021 • 19 tweets • 8 min read
1/ In my last post on #Gamma I said we would talk about Gamma bands. I expect this one to be slightly controversial, so at the end, let me know what you think.

In this post, I am going to teach you how to build these Gamma bands! 2/ Here is that last post on Gamma for reference.