[8.30 hedging strategy sharing, data positive market flat, how can the cryptocurrency circle make stable profits in a volatile market]
Last night, the US economic data was positive for three consecutive times, but the market reaction was flat. The annualized quarter-on-quarter growth rate of real GDP in the second quarter was revised up from 2.8% to 3%, the number of first-time unemployment claims last week fell to 231,000, and the annualized quarter-on-quarter core PCE price index in the second quarter was slightly revised down to 2.8%. These data all show the low inflation resilience of the US economy and provide confidence for a soft landing of the economy.
The market does not seem to buy it, most likely because the data lowered expectations for a rate cut in September. It is really a tangled trading psychology. Last night, the S&P closed flat, the Dow closed up 0.59%, and the Nasdaq closed down 0.23%. The VIX index closed down 8.47%.
The cryptocurrency circle was encouraged by the positive data and once went up. Unfortunately, it could not last for one night and began to decline again in the second half of the night.
In the current wide range of fluctuations, it is difficult to do contracts and spot, while the seller option strategy is more like a fish in water.
Suggestions:
Double sell out-of-the-money call + out-of-the-money put outside one standard deviation, and close the position at any time with the price fluctuations. Close the position and sell put when it rises, and close the position and sell call when it falls, and earn bilateral premiums more steadily.
Even if the rise and fall are not corrected for a while, because it is deeply out-of-the-money, it will not rise or fall, and the overall return will still be positive at maturity.
Risk management of double selling is very important, and insurance is required. Or use ddh tools to ensure that the price can be effectively hedged after it exceeds the price range, and there will be no explosion.
The current wide range of fluctuations is more suitable for double selling or iron eagle strategies to enjoy the dual benefits brought by the passage of time value and wave reduction.
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