Shorting Bitcoin
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Shorting Bitcoin
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Re: Shorting Bitcoin
#2so this guy is buying puts on some bitcoin funds. Such a method would have gotten you killed more often than not . nothing in this post suggests he has anything of an edge or a good strategy.
Re: Shorting Bitcoin
#3so this guy is buying puts on some bitcoin funds. Such a method would have gotten you killed more often than not . nothing in this post suggests he has anything of an edge or a good strategy.
From the second paragraph:
> This is part of this blog’s Investing theme, whose Intro[0] makes it clear that I have no investment expertise and nobody should take this as investment advice, because it’s not. It’s just a bloggy disclosure of some of my own financial positions, which I owe readers anyhow.
So...yeah, no one's claiming he has an edge or a good strategy. This is based on his beliefs, not intended as good advice for you.
[0] https://www.tbray.org/ongoing/When/202x/2021/06/25/Investing
Re: Shorting Bitcoin
#4If BTC price doesn't recover soon and falls further, Microstrategy is what will kill BTC. I don't know why BTC investors are so crazy about Microstrategy buying BTC (This would have never happened back in the early days of Bitcoin), but if BTC price goes down further, Microstrategy will be forced to sell their BTC by their shareholders. Otherwise the Microstrategy stock itself will crash. Also when Microstrategy loses too much money, they may finally have to shut down because they borrowed so much money from people just to buy BTC.
When Microstrategy crashes, along with them, the public sentiment for BTC will go to shit, and that will cause the crash of BTC itself since the whole recent price climb was based on the "institutions are buying up BTC" narrative. This is the scariest scenario. Once the downward spiral happens it will be unstoppable, it will be like the crash Mt. Gox caused, but like 100 times harsher.
Re: Shorting Bitcoin
#5If BTC price doesn't recover soon and falls further, Microstrategy is what will kill BTC. I don't know why BTC investors are so crazy about Microstrategy buying BTC (This would have never happened back in the early days of Bitcoin), but if BTC price goes down further, Microstrategy will be forced to sell their BTC by their shareholders. Otherwise the Microstrategy stock itself will crash. Also when Microstrategy lose…
MicroStrategy is up over 13% today. So the market doesn’t care or they can afford to lose some more on their Bitcoin hedge.
Re: Shorting Bitcoin
#6so this guy is buying puts on some bitcoin funds. Such a method would have gotten you killed more often than not . nothing in this post suggests he has anything of an edge or a good strategy.
From the second paragraph: > This is part of this blog’s Investing theme, whose Intro[0] makes it clear that I have no investment expertise and nobody should take this as investment advice, because it’s not. It’s just a bloggy disclosure of some of my own financial positions, which I owe readers anyhow. So...yeah, no one's claiming he has an edge or a good strategy. This is based on his beliefs , not intended as good…
buying puts and having no investment expertise. yeah that is going to end well.
Re: Shorting Bitcoin
#7If BTC price doesn't recover soon and falls further, Microstrategy is what will kill BTC. I don't know why BTC investors are so crazy about Microstrategy buying BTC (This would have never happened back in the early days of Bitcoin), but if BTC price goes down further, Microstrategy will be forced to sell their BTC by their shareholders. Otherwise the Microstrategy stock itself will crash. Also when Microstrategy lose…
If you are a shareholder, why would you sell on a loss?
Re: Shorting Bitcoin
#8Earlier quoted context omitted.
From the second paragraph: > This is part of this blog’s Investing theme, whose Intro[0] makes it clear that I have no investment expertise and nobody should take this as investment advice, because it’s not. It’s just a bloggy disclosure of some of my own financial positions, which I owe readers anyhow. So...yeah, no one's claiming he has an edge or a good strategy. This is based on his beliefs , not intended as good…
buying puts and having no investment expertise. yeah that is going to end well.
As long as it's only a small percentage of their portfolio, seems safe enough. The max loss is the put premium. Are you getting it mixed up with selling puts, where your losses are unlimited?
Re: Shorting Bitcoin
#9Earlier quoted context omitted.
From the second paragraph: > This is part of this blog’s Investing theme, whose Intro[0] makes it clear that I have no investment expertise and nobody should take this as investment advice, because it’s not. It’s just a bloggy disclosure of some of my own financial positions, which I owe readers anyhow. So...yeah, no one's claiming he has an edge or a good strategy. This is based on his beliefs , not intended as good…
buying puts and having no investment expertise. yeah that is going to end well.
Puts have limited downside?
Re: Shorting Bitcoin
#10Earlier quoted context omitted.
buying puts and having no investment expertise. yeah that is going to end well.
As long as it's only a small percentage of their portfolio, seems safe enough. The max loss is the put premium. Are you getting it mixed up with selling puts, where your losses are unlimited?
That's not right either, your downside for selling puts is limited by the strike (worst case is you pay K for a stock worth 0). Short call positions are the ones with unlimited downside (worse case is that you get K but have to cover the cost of arbitrarily high priced underlying).