How I Plan to Make $850 Profit on 1 ETH with Just $350—Want to Join Me Today?
Profit Like a Pro: The Crypto Trader's Guide to Options
Hello fellow traders…
Announcement: Tomorrow Kyle will show you on his YouTube channel how he plans to make $850 profit on 1 ETH with just $350! If you want to join him, get your accounts ready and use the links below to sign up on the Deribit exchange so that you can trade along! In this blog, I will give you more information on his strategy.
For Deribit’s Winter Trading Competition 2024 with a total prize pool of up to 200,000 USDC, join Kyle’s BANTER WHALE team here.
Trading crypto options can be like having a superpower in a market famous for its wild ups and downs. Today, we’re breaking down options into easy-to-grasp ideas that’ll have you ready to make moves like a seasoned pro.
Imagine you’re hyped because your favourite band is finally coming to town next month. Tickets are on sale now, but you’re unsure whether to buy right away or wait. Instead of purchasing immediately, you opt to buy a “reservation” (or an option) on the ticket, paying a small fee upfront to secure your right to buy it later at today’s price. If the concert becomes super popular and prices spike, your option to buy the ticket at the lower price gains value. If prices don’t change, you simply let the option expire, losing only the fee you paid initially. Options trading works similarly in the crypto market, giving you the flexibility to profit from price swings without fully committing to buying or selling.
How to Start Trading Options Like a Pro
Ready to try your hand at options? Here’s is how I’m going to show you how to buy ETH for $350 today and how to sell it for $4000 in 150 days’ time, locking in a 241% profit or $850 by 31 March 2025.
I believe ETH will go up and trade at the very least above $3600 by the end of March 2025.
Options: Calls or Puts?
Just like with that concert, crypto options let you reserve the right to buy or sell an asset at a set price before a specific date. Unlike futures or spot trades, where you must buy or sell, options let you decide if you want to, which can be a game-changer in the unpredictable crypto world. Here’s the breakdown:
Call Option: Think of this as reserving the option to buy a concert ticket if the demand (or price) goes up. Buying a Call option gives you the right to buy a token or coin at a fixed price if you think it’ll go up.
Put Option: This is like reserving the option to resell your concert ticket if prices drop or if you think demand might tank. Buying a Put gives you the right to sell an asset at a fixed price. Perfect for bearish markets, so you’re prepared if prices plummet.
In both cases, you’re paying a small premium (similar to the reservation fee on your concert ticket) to secure flexibility and avoid unnecessary commitment.
So, since I believe ETH will go up, I will buy a Call option.
A dropdown box will open. This is where you will select ETH and the expiry date, 28 March 2025 in our case.
Now you are ready to take that trade…
Or join us in the Whale Room where all this knowledge is available first hand. This is where we will guide you every step of the way!
When you open the Deribit platform, you will see a LOT of columns on the options trading page. Some columns will sometimes be hidden, and you can click on the columns setting to select what you want to see. But for now I am just showing you the columns you should care about.
If you are bullish you will take a CALL. PUTS are for when you expect the price to go down.
For now, assume you will use the ASK price – that is used to BUY an OPTION. This is true even when you take a PUT. Remember, you are buying an OPTION. You are not buying or selling ETH. You are in fact buying the right to exercise an option. BIDS are for when you are selling an option.
Right now, ETH is trading at $2636. I am selecting a strike price of $2800. It can be more than $2636 or less than $2636. But for the sake of simplicity, select this for now. Because I believe ETH will be going up, I will take a CALL OPTION. The price of the option has an ASKING PRICE of $350.92 or 0.138 ETH, and the option expires on 28 March 2025. An option always involves 5 key parameters.
So now when I click on the asking price, the transactions page will pop up. I decided to buy 5 such contracts. Here you will see that the option price is now 0.1395 ETH. I made this transaction while the market was quite volatile and the options price kept on changing.
How much will 5 options cost me at STRIKE $2800?
0.1395 ETH X 5 = 0.6975 ETH
(that’s 5 X $350.92 = $1,754.6)
How much would I make if am correct? A simplified way!
28 March 2025:
To profit, ETH must be above $2800+$350.92=$3150.92
Suppose ETH is now $4000
Profit = Price - Strike - Premium = $4000 - $2800 - $350.92
That's $849.08
For 5 Options it is $849.08 X $4,245.4
This is a 241% profit
How much would I lose if I am WRONG?
28 March 2025:
To profit, ETH must be above $2800+$350.92=$3150.92
Suppose ETH is now $3100
LOSS = Price - Strike - Premium = $3100 - $2800 - $350.92
That is -$50.92 - For 5 Options it is -$254.6
This is a 27.44% loss
OR
Suppose ETH is now $2700 - I THEN CHOOSE NOT TO EXERCISE THE OPTION
LOSS = premium = $350.92
For 5 Options it is -$1754.6
I believe this example illustrates very well WHY options trading can be so lucrative.
Options offer leverage, flexibility, and capital efficiency.
For just $350.92 you can make the same gains as someone who paid $2800 for 1 ETH.
Options can protect you if the market moves against you.
Had ETH dropped to $1200 you would have lost $1600. But with this option, you can lose only $350.92 max.
You can make a profit on 1 BTC while spending only a fraction of the price of 1 BTC. If BTC drops by $10k you will lose say, $300 or so only. If BTC rises $10k you will gain $10k-$300 = $9.7k
You can combine strategies to lower your risk even more! More about that in a follow-up blog post.
Let me address the issue of finding your profit again. You might have seen that I wrote that the calculation is a simplified way. When you trade commodities such as silver or gold, you are trading in the quote-currency. It is $ but in crypto, you trade in the base currency. So in the case of ETH, you trade in ETH and not USD. For this reason, you will calculate your profit in ETH first, and then convert that to dollars to determine the dollar value thereof. So, there will be a small difference in the outcome. Let's do it again, this time the right way.
28 March 2025:
To profit, ETH must be above $2800+$350.92=$3150.92
Suppose ETH is now $4000
Profit = Price/Price – Strike/Price - Premium = 4000/4000 - 2800/4000 - 0.1395 ETH = 0.1605 ETH
Convert this to USD
0.1605 X 4000 = $642
For 5 contracts your profit is $3210
So, by investing $350.92 you have made $3210. So you really made 182% on your investment!
🐋 Swim with the Whales
While the market was pulling back today, Captain Kyle, Christo Columbus, Josh the navigator, and Farouk the sea scalper kept an eye on it and constantly monitored the market, letting us know what to expect and where we could expect to take our next entries. We are all waiting, and we are ready.
But our members keep on stacking up the profits. Here's a look at some of the profits they brought home this week.
⭐️ Whale stories
Let’s hear from the community! Our Whale Room member LUKEOZ1 said it best:
“Follow all (the traders). There actual calls with TA, made money back for annual membership in 1 day. I was in Frontrunners too for a while but, IMO, was just a big social club with shilling and few calls. Love WR”
🔥 Whale Room’s Take: Unlocking the Full Power of Options
With this concert ticket analogy, options trading doesn’t just feel manageable—it’s strategic. Just as you’d weigh ticket prices, hype, and timing in options trading, you’re making calculated moves based on market patterns. With practice, options can become your secret weapon, whether in the Whale Room or on the market’s main stage. Remember to keep an eye on my blog for follow-up posts about options trading!
So, next time the market throws you a curveball, don’t just sit on the sidelines—grab your options and play to win!
Better still, join us in the Whale Room for guidance, community support, education, and all those trades that fall from the sky.
Chat soon!
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