Closed 2 Covered Calls on Ethereum using Perpetual Future contracts with $86 profit (19.81% yield in 5 days)
Today with ETH trading above $1,850 and having 2 call options with strike price at $1,825 I closed the Ethereum Perpetual futures position established at $1,803 just 5 days ago.
Gain from the futures: 0.0548 ETH / $101.74
Gain from the options: -0.008375 ETH / -$15.53
Total gain: 0.046 ETH/ $86
During the past 5 days I was selling 1DTE expiry calls with the strike price at $1,825.
Instead of rolling up and away I decided to close this position and re-establish a new, but smaller one. As I’m concerned that ETH could still fall to $1,500 in the near future.
Perpetual futures are traded with 50x margin on the Deribit trading platform, and to control futures worth 2 ETH I was required just 1/50 in margin collateral, or to set up this trade it was enough with about 0.04 ETH / 72.28 USD + 0.2 ETH / 361.4 USD margin for 2 call options.
Total investment: 433.68 USD
$86 on $434 investment equal to 19.81% yield in 5 days.
Future trading on leverage can be very dangerous. Learn about the risks before investing with futures.
Feel free to send me a reply if you have any questions!