How and where would I invest $100k in crypto: 

⚠️A quick disclaimer before I start, I DON'T have $100k (yet) but this is how I would invest this money.
It may not fit someone else's method or strategy, so take it as you wish.⚠️

1⃣My very first step would be to buy $20k of BTC and $20k of ETH, these 2 are the Mom and Dad of crypto, if you don't hold at least one of them, you ngmi.

2⃣From the remaining $60k I'd get $10k and buy altcoins that I like:
▪️ $MATIC
▪️ $SOL
▪️ $AVAX
▪️ $FTM
▪️ $BNB
(no meme coins allowed here)

3⃣The remaining $50k I'd hold in stablecoins (mainly USDC)
And here is where the fun begins.
I'd use this USDC to sell options and generate a weekly yield from collecting premiums.
Even by selling very OTM options, I can safely and reliably collect 0.5-1.2%/week

4⃣For trading options of course give @Synquote a try, for the first 1k people to trade on MATIC there’s a $5 USDC rebate, so if you spend $15 buying an option, you will get $5 back!🤑

5⃣I'd also keep an eye on arbitrage opportunities, as this one mentioned here: https://twitter.com/FroyoFren/status/1571094282534268928

6⃣With this portfolio, I might not be pulling numbers like @OhHaiAndy  or @JamesPelton18, but it would be a reliable passive income.
This method is not meant to make someone rich overnight, It is meant to preserve and grow a portfolio in a steady way. 

7⃣The main reason why I would sell both Covered Calls and Cash secured puts using stablecoins instead of the underlying asset itself is to prevent portfolio oscillations due to market volatility. 

8⃣I'm currently doing this on a minor scale, my options portfolio is sitting just shy of $2k, and I'm able to make between 1 and 2.5% weekly just by selling options, depending on market conditions.

I won't be tagging a huge list of creators here to boost this post, so If you would like to help, liking and sharing can do wonders, and I'd appreciate that
https://twitter.com/vincesector/status/1574384398740463617

How and where would I invest $100k in crypto:

@BanklessHQ recently posted an article talking about crypto options. They mentioned 2 types of options traders but forgot maybe the most important one: The Options Writer 🗞

So let’s dive into it 👇

As mentioned in the Bankless article, we find the risk avertoors (hedgers) and degen speculatoors, but we also find the Options writer, or options seller, which in crypto terms could be considered a type of Yield Farmoor.

The seller’s main goal is to generate consistent income by selling weekly OTM (Out of the money) options and collecting a premium by locking in some collateral which in crypto is usually a stablecoin or the underlying asset itself.

Let’s use an example:

Mr. Haines is an Options writer about to sell his weekly option, he sees ETH currently trading at $1535, and after a long and strenuous market analysis, he concluded that ETH will most likely stay inside the $1380-$1740 range until the next Friday.

Haines then heads over to @Synquote http://app.synquote.com/trade looking for an option outside the prior stipulated range and finds an $1800 call strike which is priced at $6.32 per contract.

He then sells 10 contracts, receiving $63.29 in premiums. Normally, he would need to deposit $18,000 USDC to fully collateralize the position, but with Synquote's new margin mode on Arbitrum (launching soon👀), he can under-collateralize with a minimum of around $3,126 USDC.

Let’s calculate the ROI on both strategies:

Premium / Collateral x 100

Fully collateralized:

$63.29 / 18000 x 100 = 0.35% ROI

Partially collateralized:

$63.29 / $3126 x 100 = 2.02% ROI

Choosing the under-collateralized option comes with the risk of being liquidated due to leverage. To avoid this, Haines must monitor the Account Health Factor and ensure it stays above the maintenance margin requirement of 1.

If after looking at this example you’re left wondering “why would someone lock up a huge capital for a small gain?”, let me try and give you an answer:

A speculator, or buyer, can indeed make way more money with long calls or long puts, but contrary to the seller, he has many factors acting against him and his success:

• Theta decay
• Needs to choose the right strike
• Needs to buy at low IV to avoid IV crush

• Wants increasing IV
• Needs to predict direction and strength

A seller or writer, on the other hand, doesn’t need to predict where ETH will be by expiration, he only needs to predict where it WON’T be (which is definitely easier than the first option).

So as long as ETH is not above $1800 (strike price chosen in the example) Mr. Haines doesn’t really care if ETH is at $100 or $1700 by the expiration date.

So option sellers, if not greedy, can have a very high win rate (over 90% in some cases) which for some is definitely a better strategy than to try and speculate.

In TradFi sellers used to be big institutional traders, like Warren Buffett and Michael Burry, but these past few years more and more retailers have started adopting these strategies (Covered Calls and Cash Secured Puts)
https://medium.datadriveninvestor.com/how-warren-buffett-made-7-5-million-in-under-5-minutes-79363ac2d52b
https://steadycompounding.com/options/how-warren-buffett-uses-options/

There you have it, folks. The options writer might not be the flashiest trader, but he sure knows how to make a consistent income.

And with crypto options becoming more and more popular, we might just hear more and more the narrative of selling options, both for institutions, protocols, and also for retailers like myself.


If you’re interested in learning more about Crypto options and becoming an Options Writer yourself, I’ve got just the thing for you. Check out my course on Crypto Options to learn how to find and sell these weekly options to make a consistent income:

https://www.udemy.com/course/crypto-options-101-how-to-make-passive-income

Thanks for reading about the current state of crypto options and the roles of different users in the ecosystem.
I’m gonna leave the link to the original BanklessHQ article down below.

Cheers!
https://newsletter.banklesshq.com/p/getting-to-know-your-options

You can read the unrolled version of this thread here: https://typefully.com/vincesector/sGcanrG
https://medium.com/@vincesector/the-options-trader-no-one-talks-about-5c330eae89f9

Had huge profits last week, I made 5% on a short strangle and a 1.6% ROI on an ETH covered call!

Let's take a closer look 👇

I opened the short strangle using our soon-to-launch margin mode on Synquote, sold an $1800 call and a $1450 put, with the idea that ETH would stay inside this range (which it did)

Our normal covered calls and cash-secured puts are also on a roll, with no losses since November 💰

My current positions for Feb 17th are another short strangle with range of $1350-$1650 and a $1350 short put

Weeks with 5% gains are VERY uncommon and shouldn't be your goal, I usually try to make 1-3% per week, always trying to go for most OTM strikes and safe deltas.

I couldn't have such a high winrate without the help of @SleepMoneyMaker which has been providing very useful data!

You can learn how to do this yourself by joining my course, and if you use the link below you get 20% off!
https://www.udemy.com/course/crypto-options-101-how-to-make-passive-income/?couponCode=TWITTER20


First 5% week of 2023

I'm up +8.27% this month on my crypto options portfolio!

If we project this, it gives me a 167% APY

How have I done this, and better question, how can YOU do it?

This portfolio is the one I use for my options strategy, it consists of selling weekly options on ETH, to collect a consistent premium.

I've been doing this for a long time now, and I've made multiple threads about this, like this one here:

https://typefully.com/vincesector/how-to-make-passive-income-in-crypto-H1Qgbhx

This month I've sold 2 calls and 2 puts, it all depended on IV, delta, and the overall feeling I had about the market.

Fortunately, I've got all of them right, this is why this month has been really good averaging a 2% per week.

Every Friday at 8pm UTC I go live on youtube and I open these weekly positions during the stream, explaining my logic behind it, answering questions, and showing my portfolio.

Here's the link for today's stream: https://www.youtube.com/watch?v=1bWzQczAYjw

If you want to sit down and learn how to make passive income every week with this strategy, I've created a course on Udemy where I collected all the knowledge you need to start making money with crypto options.

https://tinyurl.com/cryptooptionsudemy

Don't worry, I also have tons of free content focussed on Crypto Options here on Twitter and on my youtube channel @EvertonDeFiFarmer, so check them out

https://typefully.com/vincesector/generating-yield-by-selling-options-Mlltgk3

You can read the unrolled version of this thread here: https://typefully.com/vincesector/npuOpJM

Up 8.27% this month

This week 04th-11th:
ETH: -23.52%
BTC: -20%
SOL: -41%
My options portfolio: +3.22%


But how did I do this?

I simply sold crypto options against my stablecoins.
Let me explain it


Options have been used in TradFi for decades now and by many big-name investors like Warren Buffett and Michael Burry and many others.

Options can be used for a multitude of strategies, but I personally use them to generate passive income.

I've already covered this strategy in many other threads, here are some of them
https://twitter.com/vincesector/status/1560968711321829377
https://twitter.com/vincesector/status/1555228904180301825
https://twitter.com/vincesector/status/1574384398740463617

If that intrigued you, and you wanna go deeper into the rabbit hole, I've created a course with over 2 hours of content, that will teach you about crypto options and how to be profitable with them https://tinyurl.com/CryptoOptions

You can use the code TWITTER20OFF for a 20% discount

I'm also part of the ZZZ money club, a discord with great content creators like @OhHaiAndy @DecadeInvestor @JamesPelton18

There we have a huge community where we talk about crypto, stocks, options, mining, utility nodes, and much more, check it out!

https://tinyurl.com/ZZZeverton

This month's performance

Have you thought about how much money you need to live off of passive income? 🤔💵

I did and you might be surprised by my numbers 🧮

First of all, I wanna make sure you understand these numbers vary from case to case.

I live frugally, my happiness doesn't come from having expensive things, I live in a third-world country and I get paid in dollars.

I ran the numbers based on the premise that I'll keep living here in Brazil (which I won't) and did some math to figure out how much would I need to spend per year to maintain my lifestyle in Brazil

That's right folks you'd only need $14k passive income to live a good life in 🇧🇷

This amount is what I need to be making in passive income, if I'm using my crypto options strategy, making an average of 1.9%/week, I'd need a bit less than $15,000 USD invested and would be making $1,274 USD/month. or $15,288 USD/year

Are you interested in knowing more about my crypto options strategy?
I've made a detailed course on how to collect weekly premiums selling crypto options, check it out here: https://tinyurl.com/CryptoOptions

The first 5 people to use the code CRYPTOTWITTER30 get over 45% discount on it!

As I mentioned these numbers change from person to person, in the US this number would most likely be 4-5x higher.

But this goes to show that if you choose a good location somewhere in the world and play your cards right, you don't need millions to make good passive income.


You can read the unrolled version of this thread here: https://typefully.com/vincesector/V6GdGEY

How much do you need to live off of passive income only?

Is Yield farming still a good PROFITABLE idea in a Bear Market?🐻

As the former DeFi Farmer 👨‍🌾, I'll answer this question for you👇(1/10)

I come from a time when you were able to get over 70% APY on stablecoins, either with boosted rewards, where you got part of the yield in a crappy gov token, or via dangerous looping mechanisms.

Either way, those numbers are hard to come by in this market.
(2/10)

That does not mean you can't make money with yield farming, liquidity mining or LPing, you just need to find harder than before, to get a worse yield than before!

If you gonna do that, you can go 2 ways: (3/10)

1⃣ You either find a good yield aggregator or optimizer, like @ClipFinance (shout out to my friend @Dynamo_Patrick), @GrizzlyFi, @beefyfinance, or others like these, that will get your money and put it to work for you and you don't need any extra work.

#notanad (4/10)

2⃣ Or you look for the source of yield yourself, without a middleman, using Uni V3, @perpprotocol, or others.

So why would you choose one over another? (5/10)

•Yield aggregators are simple, easy to use, and fast, you deposit your money and they do the dirty work for you.

•The second category requires a bit more knowledge, higher risk but higher rewards. (6/10)

So clearly we need to choose either Perp or Uni V3, right?

Wrong.

If y'all mfs don't know how to use them, Impermanent loss will come for your money, or maybe you'll end up liquidated. (7/10)

On Polygon, with Uni V3, if you provide liquidity to ETH-USDC in the $1150-$1450 range, you can get 1142% APR

But the downside is that you need to always be aware of the range, adjust it if needed, and if ETH goes down, you will have a bit of impermanent loss to deal with (8/10)

I'm trying to make a point here for the people who follow me and sometimes ask me where should they put their money.

It is all up to them and how much effort and time do they want to put into it.

This is usually my answer: (9/10)

So compared to before, Yield farming is way less profitable, but it isn't dead, there is still money to be made if you focus more on knowledge rather than a high APY. (10/10)

You can read the unrolled version of this thread here: https://typefully.com/vincesector/uWsbPgO

Yield Farming in a Bear Market... Worth it?

1️⃣ I've been postponing this rebranding for quite a while now, but here we are.

DeFi Farmer is now Everton Matheus... just ME.

With the growth of scammers or shillers with "DeFi" in their name, I decided to step away from it.

Still be covering passive income ways in DeFi tho.

2⃣ But now I won't have a persona anymore.

Just me, my opinions, and a more educational focussed content.

Hope you enjoy this more personal, more in-depth chapter of my journey.

3⃣ I liked being just a "youtube dude", but even though I was never hiding my name or face, I think influencers should understand the power they yield

In this space, I'm not even that relevant, but there are people who hear-read-watch what I say and I want to be held accountable

Good Bye DeFi Farmer

You must've seen 200-300% (or higher) trades posted here on CT, and I bet at some point you thought of giving it a go, because it almost seems too easy, right?

This brings up a valid question, which one is better, trading options or leveraging? 

Both ways are riskier than just holding the asset itself and waiting for it to appreciate in value, but they also offer the ability of “shorting” assets or basically to bet they’re going down. 

Unfortunately, to answer this is a bit more complex than just choosing one over the other, and we will need to understand a bit of how both strategies work, and the pros and cons of each, this is why I’m writing this thread but don’t worry, I promise I won’t make it boring.

Leveraging:

Leveraging lets you borrow money from the protocol and use that to trade, either boosting your profits or losses, and here is where the danger lies.
Profits can turn into losses and sometimes make you in debt with the protocol itself. 

On gTrade for example, you can leverage your capital up to 150x, meaning that by depositing $100 you can trade with $15000!

This is good for traders with low capital, giving them more exposure to market movements and if executed correctly, can make a lot of money from it. 

Unfortunately, we’ve seen plenty of study cases worldwide showing some truly remarkable data exposing that less than 20% of day traders are profitable after 1 year and from that number, only 3% make more than minimum wage. 

So for you to become a profitable trader, you need time, knowledge, and emotional discipline.

I’m sorry to break it to you, but just buying a course won’t give you all the knowledge and know-how you need to be a good trader.

Options:

I talk a lot about options, so before sounding like a maxi, I wanna say that options aren't the superior strategy here.

options trading requires an understanding of not only the underlying asset but also of options themselves

https://twitter.com/vincesector/status/1566089601164447746

When buying options, time is never your friend and it directly affects your PnL.
Theta is the indicator that shows time decay of your options' prices.

So you need to get the direction right and also how fast will the asset move in that direction. 

So while this adds another level of complexity to the trade, options come with a few indicators called Greeks, that if utilized correctly can increase one's success rate.

Learn more about greeks here: https://tinyurl.com/Ogreeks

That being said, options traders do have a higher win rate than day traders and after 1 year, plenty of them still frequently trade while it can’t be said the same for day traders. 

If this was helpful to you, it might be helpful to someone else.
If so, could you share this thread? 
Thanks, friend. https://twitter.com/vincesector/status/1569380930405408768

Let’s run a quick simulation:

The current price of ETH is $1725 and you believe that it will go up to $1900 in the next few days, which strategy is the most profitable for you?

I ran the numbers, and let’s assume ETH in 2 days blasted up to $1900 as you predicted, assuming you bought a $1750 ETH call expiring 2 days later, you would’ve been very ITM, you could have a 410% gain if you closed your position.

How does that compare with a leveraged trade? 

If you had bought ETH at $1725 and just held it to $1900, that would’ve been a 10,5% gain without leverage.
So for you to achieve the same profit as the call option, you'd need to leverage 39x your position, while also assuming the risks that come with leveraging 

Conclusion:

All of this is not meant to tell you which one to go for, the main point here is to prove that with enough knowledge and preparation, one can profit with multiple strategies.
Just be smart and take calculated risks.

I personally don't leverage and hardly buy options, my most profitable strategy is to sell crypto options, if you want to learn a bit more, check this thread: https://tinyurl.com/SOCTT

Options trading vs Margin trading (Leverage)

You probably have heard of protocols like @ThetanutsFi, @ribbonfinance, @friktion_labs, @Katana_HQ, and @dopex_io, but what do these protocols actually do? 

DOVs (DeFi Option Vaults) are protocols that make it easy for inexperienced users to profit from selling options (CCs and CSPs)

In simple terms think of these vaults as coin pouches, where users collectively deposit their money into and let the protocol do the rest. 

If these options expire OTM (in the user's favor), then the premium collected - protocol fees will be added to this pouch and users can withdraw.

If the option expires ITM (against users) then the protocol will withdraw part of the users' funds to pay the losses.

DOVs are VERY DIFFERENT from crypto option protocols like @lyrafinance and @DeribitExchange 

DOVs: Users don't choose strike (less risk but less yield)

@lyrafinance and others: Users can choose strikes and expiration dates (more risk but more yield)

Now here are 5 DOVs I'm keeping an eye on that you probably haven't heard of (sorted in random order)

@PsyOptions 
PsyFinance reminds me of early thethanuts, a very simple design. Their risk tab on the other hand is something all DOVs should have.

Really small TVL.
On solana 

@0xPolysynth 
As the name might suggest, they're on Polygon (and ETH mainnet)
Not a fan of the UI, but it doesn't affect negatively my experience with it.

Really good "overview" and "how it works" tabs.
Low TVL and not many asset choices (MATIC, ETH, BTC) 

@PolynomialFi With the cleanest UI among these 5.
On Optimism (you know I like that) built on top of @lyrafinance if I'm not mistaken.

They have a very interesting GAMMA vault, I'll be keeping tabs on the performance. 

@PremiaFinance 
One of the highest ones in TVL and it is multichain (ETH, ARBITRUM, OPTIMISM, and FTM)

Other than that, really bad User experience, very confusing, and from the little I understand, these vaults are buying options and not selling them. 

@DAOJonesOptions 
The highest one in TVL.
Built on top of @dopex_io.

I personally would like more token variety, other than that I don't have much to say.

Very simple and friendly dapp. 

These 5 are the smaller competitors that I think have a chance to succeed if they keep improving.

Out of the 5, I personally like @PolynomialFi and @PsyOptions the best, will be testing them to see how their vault performs.

My plan is to eventually build a DOV myself, offering vaults not only with simple selling strategies but also more complicated strategies for different market conditions.

still nothing more than a dream, as of yet.

Anyways that's today's drop of knowledge.

If all of this was helpful or insightful, consider being a homie and sharing this thread so other homies can see this.

https://twitter.com/vincesector/status/1566089601164447746 