【Talk about the recent trading strategy for sol options】
Recently, I have been doing a double-sell strategy for sol options, and the returns are good. Share your thoughts.
Overall, it is still delta neutral. In order to increase the winning rate, choose a double-period limit and sell double outside a standard deviation range.
If the price moves unilaterally and is about to reach the critical point of the price range, use contracts or spot to hedge the delta exposure.
I trade on Yazhan, using cross margin, only keeping a few hundred USDC for opening positions, and the rest is used as ETH as margin.
Roughly estimated, the annualized rate of return is around 90. There is currently no ddh tool for sol, so I dare not open too large a position.
Manual hedging requires predicting changes in price direction, and hedging is relatively lagging, especially at night. If there is a ddh tool, it will be easier.
I have also tried the iron eagle strategy combination, but the returns are not as good as hedging with contracts and spot. The root cause is that the option spread is too large.
There is another idea, which has not been put into practice yet, but only a preliminary estimate. Go long on Bitcoin volatility, short on Sol volatility, and earn the volatility difference.
For cross-currency hedging, select options at delta25, double buy Bitcoin, double sell Sol, and manually hedge when the rise or fall of any currency reaches the critical point of the price range.
At present, the volatility difference has reached nearly 20, and there is still room for arbitrage.
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