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Making $1,000 Trading Bitcoin Options | FTX (LedgerX) - YouTube
Channel: Lalit Devraj
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what's going on everyone lulid here
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bitcoin and trading options i finally
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got some hands-on experience with a
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platform known as ledger x
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where you can trade options on bitcoin
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as well as trade futures on bitcoin as
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well as do other items related to
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bitcoin in my first week i've made a
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little more than a thousand bucks
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and today i want to share exactly how i
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did it but more importantly
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go through the platform step by step so
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you can understand exactly how to do it
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too
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on the channel we talk about
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cryptocurrency the stock market credit
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personal finance and investing overall
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so with that
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let's get straight into it so what is
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ledgerx
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basically when you get onto the home
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screen and you're not logged in or
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signed up yet
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basically bitcoin options and futures
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have never been better
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their contract sizes 0.01 btc
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and at the time of this recording
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bitcoin just passed to a new all-time
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high of around 62-63 k in that region
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0.01 btc is 630 roughly
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per contract size trade bitcoin
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derivatives 24 7 on one u.s
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regulated platform so scrolling down you
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can explore your options
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so you can buy and sell bitcoin you can
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basically just buy bitcoin and sell
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bitcoin
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but you can also trade options as well
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as futures looking into the detail it
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says generate cash now by selling calls
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hedge against price risk what i like
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here is that on the channel we do talk
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about selling calls and over here
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they're talking about options as a way
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to generate income instead of just the
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other side of what's attributed with
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options trading in general
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scrolling down you got build your
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portfolio today so some high level
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information
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execute income strategies and hedge
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downside and upside risk
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aka do more with your bitcoin so you
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have these mini contracts of 0.01 btc
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it's open for trading 24 7 as is crypto
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in general
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you got information of their custody
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ends with bitcoin bitgo trust
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audited financials and controls as well
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as federally licensed and regulated
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scrolling down you got some news at a
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high level
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with ledger x and potential partnerships
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and otherwise
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and look at this get started in three
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steps so fill out
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our quick and easy application fund your
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account with usd or btc
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and you're able to trade bitcoin options
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and futures if you press get started it
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basically takes you to a sign up page
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and i wanted to show this part because
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over here specifically trading on ledger
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x is currently available to the
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following folks
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so take a second and pause but there's
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information right here on the screen
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right before we get into the actual
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platform itself
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in terms of how long it took me when i
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signed up i basically signed up and they
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asked for your passport or driver's
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license
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or some similar identification for their
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kyc aml process
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and overall it took me literally just
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one day and even less than that
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and i was able to start trading like
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immediately so when you log into ledger
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x this is what you see
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and so from left to right you got
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available for trading so
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usd and btc i don't have any available
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for trading
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but i have positions that are current
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and so we'll get to that in just a
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second
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so order locked and get into the
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position locked part
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if you look there's usd of zero dollars
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that's locked up aka i don't have any
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puts
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right now but in terms of calls i did
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sell some calls and we'll get into that
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detail
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but basically 0.1 btc is what's locked
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up at this time
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and to the right of that bitcoin is
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trading right now its current price and
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your bid
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spread over here 62 800 all the way to
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62
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0915 so moving on you can do a few
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things with this site
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from bitcoins options and futures and so
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for bitcoin it's pretty straightforward
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you can press by btc
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and you got the price over here and how
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much do you want to buy
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so over here your minimum order quantity
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is that one contract price
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so your minimum order is essentially
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0.01 btc
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which comes out to 629 at the time of
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this recording
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now this is a market price and you can
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definitely just limit it so for example
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if i wanted bitcoin at 60k
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then naturally it's gonna update just
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like that what i like over here is that
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you have the order book and so you can
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kind of see like okay what's kind of the
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recent history that's been going on
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kind of similar to coinbase pro and a
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lot of other kind of platforms
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but essentially you're not just putting
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a market price type of order
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similar to your base cash app etc so you
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can buy bitcoin you can sell bitcoin
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and then moving on from there to get to
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the central part before we move on
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at a high level basically you got your
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bitcoin graph over here
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and then over here you got the actual
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options change themselves and if you
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press futures
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then you get it over here as well and
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see the expiration bid ask open interest
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and any positions right now i don't have
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any future positions open
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but coming back to options pretty
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straightforward your expirations over
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here
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april 16th april 30th it's not weekly
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kind of how it is similar to a lot of
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stocks in the stock market
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but if you scroll down after april 16th
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and april 30th there are other strikes
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but right before there you can see these
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strike prices over here
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so for example at the time of this
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recording let's say a couple weeks from
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now
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if you look at the 60k strike or 65
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around that in the money region
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basically let's just say i press it so
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we can simulate an order
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so you got 13k interest so if i press
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here then basically it takes me right
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here for an
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options order entry so they call it a
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mini contract and you can see the
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expiration over here where my cursor is
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as well as the actual strike price
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itself so if i put in one contract
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like this you can see the underlying
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premium that i would get
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in a market price oriented type of world
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is 50 dollars and 75 cents and that's
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for 0.01 btc again
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as the minimum contract size is for
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ledger x
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so if i wanted more premium for example
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if we look at the bid and ask
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over here if it's 5075 it'll probably be
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filled
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relatively or instantly in my own
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experience as well that i've seen
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on ledgerx but if you go over here i
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mean you can ask
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for a lot and you see one contract over
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here 34
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020 so your premium on 0.01 btc
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would literally be 340 bucks and 340
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bucks divided by 620
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is going to be roughly 50 and when you
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think about it in that way
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with the expiry expiration being april
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30th a couple weeks from now
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that's a pretty good return if someone
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actually were willing to
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execute on that actual arrangement so
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this is for calls
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and you can do the same thing on ledger
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x for puts so just to keep things simple
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same date let's say same strike you can
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press it over here
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it auto updates over here and just to
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bring the point home
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0.01 is one percent naturally so if you
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put 100 contracts then you're trading on
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a full bitcoin
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and so it shows up like this in terms of
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a preview
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so moving on from here the menu on the
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left side you got some items like
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settings risk my dashboard balances in
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history
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and so basically if you go to risk for
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example and you want to do a little more
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deep dive into research
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or potential greeks behind certain type
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of option plays
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then you can get that clarity as well so
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for example if we go to let's say may 28
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just arbitrarily
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you can kind of see like okay mini
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contract date
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strike and then you get implied
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volatility delta
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and certain information over here and
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you can go through different expiration
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dates to kind of see what you're looking
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for
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so moving on from here if you come back
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to the menu and go to balances in
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history you can actually see
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well of course history and so if you see
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made a few trades not too many but on
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those 10 contracts that have sold
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basically the premium collected if you
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do the math it's a little more than a
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thousand bucks
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and in terms of fees it's 30 cents a
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contract so if you sell 10 contracts
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then there's three dollars in fees
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etcetera etcetera
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so looking at the history april 2nd is
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when i sold this contract and i did it
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for a week just to kind of try it out on
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my first time
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and what was pretty cool is that they
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deposit the money not through ach where
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you got to wait they actually wire it to
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you
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and so coming back to the front screen
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over here basically if you look at this
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buy and receive btc at 4 pm est
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or sell receive usd now and so what
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happens is in terms of a workflow
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that usd now actually goes right over
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here it will be available for trading
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but unlike other platforms you can
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actually see that hey it's available for
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trading
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but when you press withdraw it actually
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gives you that capability
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to immediately withdraw it to your
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account it says wire but it's not
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instant instant but i've received funds
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as soon as the next day and then on the
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weekends it doesn't process i gotta wait
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till the weekday but then i get it
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eventually
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so coming back to balances in history
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basically
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after the trial kind of me figuring this
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out basically ledger x is pretty easy to
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use and if you're familiar with selling
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calls selling puts
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options in general it's a super easy to
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use platform very straightforward
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so coming to over here around april 9th
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and a little shy of three months
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i sold a call at 60k strike and they're
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all 60k in this case
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but if you look carefully the premium
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this is basically saying 101
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20 aka 10 120 if it was a full bitcoin
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but basically because the contract size
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was 0.01 it's basically one percent of
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that
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and so the premium i collected was 202
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40 cents because it was two contracts
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and there's some fees associated with it
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of 60 cents because it's 30 cents a
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contract
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so doing the math if you look at this 10
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000 roughly divided by 60k
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is roughly 16.6666 percent
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and so to get basically a little above
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five percent
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a month on average within this
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three-month span for selling this call
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that's basically the position i was
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looking at i'm super bullish on btc
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just putting that out there and the
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point being that 17 percent
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above your 60k pretty much gets me to a
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break even of 70
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000 per bitcoin it's not that i don't
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think bitcoin can pass 70k in the next
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three months
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but this play in general of selling
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calls against bitcoin
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wasn't that i actually want to lose or
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kind of give away my bitcoin quote
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unquote
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at a certain price because i'm super
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long on bitcoin but the reason i did
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this is because
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i'm super comfortable holding bitcoin
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for the long term and so from a covered
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call perspective
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if i were to receive premium and let's
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say bitcoin goes below 60k for whatever
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reason
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towards that expiration date then i'm
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okay with that
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i'm okay with that because i keep the
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premium and i'm okay holding the asset
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now on the flip side let's say that
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bitcoin actually goes
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to the moon to 80k or 100k in the next
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three months just an example
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now if it went then i'd technically be
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leaving money on the table
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and that's true the caveat here is that
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i was never really using
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bitcoin that i would not want to hold
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forever on ledger x
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what i mean to say is the bitcoin on the
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platform is the same bitcoin
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that wouldn't really be in my long-term
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holding type of accounts
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the reason i'm doing this is really
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similar to what they said on their home
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page of generate cash
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by having your bitcoin and so when i can
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sell options against the same asset but
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the way i'm looking at it is i'm not
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really losing any bitcoin
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that i would consider a long-term hold
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but i'm just using this strategy
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basically to generate cash on cash
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return essentially the way i'm looking
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at it or
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cash on bitcoin if you want to look at
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it that way so if you're getting eight
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percent or nine percent or ten percent
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on usdc
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or other type of crypto assets on your
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geminis of the world on your block fis
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on your next so celsius etc etc the way
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i'm looking at it is well
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i like to trade options and i do with
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the stock market so might as well
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integrate that knowledge but with
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cryptocurrency
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especially with an asset i'm really
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comfortable with so with that
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[Music]
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hopefully this was helpful and i know
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there are some other competitors to
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ledger x
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and if you want me to review those drop
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a comment down below you know how it is
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but with that
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see you soon enough peace
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