Cryptarbitrage

In the previous 3 episodes we were hedging our deltas dynamically, using the futures, and automating that process using the Greeks Live tool. We will use that tool again in future videos, but in the next few videos we’re going to look at a different hedging technique called static hedging, which uses other options to hedge our risk, rather than the futures. As you will see, this results in another profitable period for this account. Part 1 of this series (playlist): https://www.youtube.com/watch?v=ZE2LpCH2AJ4&list=PLg4WadwSaSMKz36pEu-rQ-2dkmu7an2g6 Trade On Deribit (10% fee discount via this link): https://www.deribit.com/?reg=1332.557&q=home My twitter: https://twitter.com/cryptarbitrage

Part 3 : Is it best to use the perpetual or the dated futures to delta hedge our option portfolio? How can we efficiently switch between the two? How will the short vol portfolio cope with some larger moves in the bitcoin price? And what on earth is the portfolio margin matrix? These are the questions we will be answering in today’s video. This is the third video in this series where we are currently delta hedging a small portfolio of options on Deribit. Today we will make several trades on both the options and futures. We will also discuss some more specifics about the delta hedging on the futures, including using the Futures Spreads to roll positions between different instruments. And we will then close down the remaining positions before the holiday period, giving us the perfect opportunity to look at how the account equity has progressed so far in the series. Part 1 of this series (playlist): https://www.youtube.com/watch?v=ZE2LpCH2AJ4&list=PLg4WadwSaSMKz36pEu-rQ-2dkmu7an2g6 Cash & Carry playlist https://www.youtube.com/playlist?list=PL6JuqDsLnzXkkzSVTwAS1MReMMppqLHXN Trade On Deribit (10% fee discount via this link): https://www.deribit.com/?reg=1332.557&q=home Greeks Live: https://www.greeks.live/ My twitter: https://twitter.com/cryptarbitrage

Part 2 : How is our delta hedged portfolio performing as the price of bitcoin moves? What margin usage should we target for the portfolio? And what adjustments to the hedging settings can we make as the portfolio increases in size? These are the questions we will be answering in today’s video. This is the second video in this live option trading series, where we are currently delta hedging a small portfolio of short options on Deribit. Today we will add some more positions to the portfolio, and adjust the settings of the delta hedging tool from Greeks Live as we go. Trade On Deribit (10% fee discount via this link): https://www.deribit.com/?reg=1332.557&q=home The Deribit Option Course: https://insights.deribit.com/options-course/ Greeks Live: https://www.greeks.live/ My twitter: https://twitter.com/cryptarbitrage

In this video I will demonstrate how to use the Auto DDH tool from Greeks Live to automatically delta hedge option positions on Deribit. We’ll see the live options trading executions, the delta hedge tool set up, and the futures trades made by the tool to hedge our deltas. Trade On Deribit (10% fee discount via this link): https://www.deribit.com/?reg=1332.557&q=home The Deribit Option Course: https://insights.deribit.com/options-course/ Greeks Live: https://www.greeks.live/ My twitter: https://twitter.com/cryptarbitrage

This will be a quick video today, highlighting an upcoming move that we’re likely to see in the implied volatility rank (IVR, IV Rank) for bitcoin, and how this is caused by the extreme volatility we saw when FTX collapsed last year. Trade On Deribit (10% fee discount via this link): https://www.deribit.com/?reg=1332.557&q=home IVR and IVP post: https://insights.deribit.com/education/iv-rank-and-iv-percentile/ The Deribit Option Course: https://insights.deribit.com/options-course/ My twitter: https://twitter.com/cryptarbitrage

This video will walk you through how to trade an option on Deribit, how to track the performance of the trade while it is open, and how to close an option position. Trade On Deribit (10% fee discount via this link): https://www.deribit.com/?reg=1332.557&q=home The Deribit Option Course: https://insights.deribit.com/options-course/ Covered calls lesson: https://insights.deribit.com/options-course/sections/section-12-strategies-and-combinations/options-course/lectures/lecture-12-6-covered-call/ My twitter: https://twitter.com/cryptarbitrage Video content 00:00 - Intro 00:40 - The option chain 01:27 - Buying a call 03:47 - Adding columns to the option chain 04:42 - Buying a put 06:27 - Checking performance 07:57 - Closing the long options 10:11 - Opening a covered call 12:47 - Progress check 14:23 - Expiry 15:39 - Summary and what's next

Understanding the option Greek theta better. We cover what theta is, and when what happens in practice differs from the basic definition. The option calculator featured in the example: http://www.option-price.com/ Trade On Deribit (10% fee discount via this link): https://www.deribit.com/?reg=1332.557&q=home The Deribit Option Course: https://insights.deribit.com/options-course/ My twitter: https://twitter.com/cryptarbitrage Video content 00:00 - What is theta? 00:46 - Differentiation and how it applies to theta 02:08 - Theta with different time to expiry 02:55 - An example of the difference 04:15 - Theta with less than one day to expiry 05:30 - Theta on Deribit