Tyler discusses onchain options vs PUMP leverage
Tyler explains why options could be better than trading crypto with high leverage “This is a very hard market to trade with high leverage. Anyone who late longed PUMP with 5x got liquidated on Friday. 5x or higher, you got liquidated” “If onchain options were more prevalent, right? Like let’s say your view is PUMP’s going to be much higher by the end of this year but you don’t know how it’s going to get there” “You buy some December 31st, way out of the money calls. Let’s call it a penny or maybe even like $0.15” “Your position took a hit on Friday but it’s still alive versus the 5x longs that got liquidated” “So I think there is space for that here from a trading perspective. I don’t see many folks adopting it or posting about it. Perhaps we just don’t have it prevalent enough yet”
Transcript (en)
This is a very hard market to trade with high leverage. Anyone who late long pump with 5X got liquidated on Friday. 5X or higher, you got liquidated. If on-chain options were more prevalent, right? Like let's say your view is pump's going to be much higher by the end of this year, but you don't know how it's going to get there. You buy some December 31st, way out of the money calls. It's called a penny or maybe even like 015, right? Your position took a hit on Friday, but it's still alive versus the 5X longs that got liquidated. So I think there is space for that here from a trading perspective. I don't see many folks adopting it or posting about. Perhaps we just don't have it prevalent enough yet.
