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Jul 31, 2022 • 10 tweets • 4 min read
Is selling crypto options for yield an attractive strategy?
With the rapid growth of DeFi Option Vaults (DOVs), you may be wondering whether this is an attractive risk-reward strategy to generate income. A thread (1/9)
In TradFi, selling volatility or options is a common strategy used by funds to generate yield. When investors use a recurring options selling strategy (similar to what DOVs offer in crypto), they are trying to harvest what is known as the volatility risk premium (VRP).