1. Core strategies and operations
Strategy 1: Single-leg buy deep out-of-the-money
Operation: Buy deep out-of-the-money call/put options (Delta < 0.1) that expire in 6-12 months.
Coin circle characteristics:
High leverage: 0.5% of the principal may get a hundredfold return (such as BTC from 30,000 to 100,000 US dollars).
Low liquidity: The bid-ask spread of long-month contracts is large, and Deribit quarterly contracts are preferred.
Case: BTC is currently priced at 30,000 US dollars, and a call option with an expiration price of 50,000 US dollars and an exercise price of 6 months is bought, with a premium of about 300 US dollars. If it rises to 70,000 US dollars after halving, the option value may exceed 20,000 US dollars.
During the recent decline, a friend bought a put option with a 2,000u lottery ticket and made a profit of 50,000u, but it was still due to the operational error of not holding the option in advance.