The Monte Carlo simulation based on the power law slopes is more conservative than traditional Black-Scholes (the trillion dollar equation).


This is because we consider properly the large tails of the distribution of possible Bitcoin returns.
This is a full backtest on the history of Bitcoin.
Cover calls using this method can give very safe 1% premium a month and 2 % with just a bit more risk.
This is while being fully exposed to long term Bitcoin growth.
BTC-4,21%
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)