PETRO-LWA

Buy an ATM call AND an ATM put at the same strike and expiration. Maximum loss is the combined premium. Profit is unlimited in either direction once the move exceeds the total premium paid. Ideal for major-catalyst windows: protocol upgrades, ETF decisions, Fed rate announcements.

• Identify a major catalyst event 3–6 weeks away (BTC halving, ETH upgrade, FOMC)
• Buy ATM call + ATM put with 45–90 days to expiration on Deribit
• Ensure combined premium ≤ 8% of underlying price for favorable risk/reward
• Exit within 48–72 hrs of the event — before theta decay accelerates
• Stop-loss: exit if position loses 50% of premium paid

Buy an OTM call at +10-15% above spot AND an OTM put at -10-15% below. Cheaper than the straddle but requires a more explosive move. In crypto, this is often a superior entry due to frequent 20-40% monthly swings.

• Select strikes ~10-15% OTM on both sides for BTC, ~12-18% for altcoins
• Prefer 60-90 day expirations to buffer against IV crush
• Total premium target: under 5% of underlying value
• Monitor IV: enter when IV Rank < 40, exit when IV Rank > 70
• Take 50-70% profit quickly if a large move occurs

Buy a near-the-money call, sell a higher-strike call, sell an even higher-strike call. The double short calls finance the long call. Profits captured in the bullish move zone; uncapped loss if the asset explodes past the top strike — so set a hard stop.

• Identify bullish trend: higher lows, above key moving averages, on-chain metrics positive
• Buy 1 ATM call (e.g., BTC at $100k), sell 1 call at +15%, sell 1 call at +30%
• Target net cost: zero or small credit
• Exit when underlying reaches the middle strike (take profits)
• Hard stop: if underlying breaks above top strike, unravel immediately

Sell 1 higher-strike put and buy 2 lower-strike puts (2:1 ratio). If the market crashes, the double long puts generate uncapped profit. If the market rises, the net credit from the sold put cushions the loss. Cohen's Put Ratio Backspread adapted for crypto bears.

• Bearish signal: breakdown below key support, rising exchange inflows, whale sell signals
• Sell 1 ATM put, buy 2 puts at -10 to -15% below current price
• Target: net credit or zero cost to enter
• Max profit if underlying crashes to zero (or near token collapse)
• Exit: if rally occurs above entry price, take loss on the position

Bull Put Spread + Bear Call Spread combined. Sell a put and buy a lower put (below market), sell a call and buy a higher call (above market). Profit if the asset stays between the short strikes. Time decay is your ally — designed for consolidation phases in crypto cycles.

• Identify range-bound phase: Bollinger Bands squeezing, declining volume, no near-term catalyst
• Sell call spread: sell call at +10%, buy call at +20% above current price
• Sell put spread: sell put at -10%, buy put at -20% below current price
• Target: net credit 25-35% of the wing width
• Exit: close at 50% of max profit OR if underlying breaks either short strike

Own spot BTC/ETH. Every month, sell OTM call options at +8-15% above spot. Collect premium as income. If the asset rallies past the strike, holdings get "called away" (cash-settled in crypto). If it stays flat or drops, keep the premium. In crypto, IV is so high that monthly premium yield can reach 3-8%.

• Hold minimum 0.1 BTC or 1 ETH in spot on a supported platform
• Sell monthly OTM call: strike 10-15% above spot, 25-35 DTE
• Collect premium (in BTC/ETH or USDC depending on venue)
• If exercised: buy spot back and repeat; if expired: sell another call
• Stop-loss: exit covered call if IV spikes > 150%

Sell 1 lower-strike call, buy 2 higher-strike calls (2:1 ratio). If the asset rockets upward, the double long calls generate explosive profits. If the asset drops, the net credit from the sold call offsets the loss. Cohen's "controlled rocket fuel" strategy.

• Strong bullish signal: technical breakout, on-chain accumulation, macro tailwind
• Sell 1 call at +5% above spot, buy 2 calls at +15% above spot (same expiry)
• Execute at zero cost or small net credit
• Target: 3-5x move in the underlying within 30-60 days
• Exit: if underlying hits the 2x long strike target, close 1 long; hold second for further upside

Own 1 unit of spot crypto. Buy 2 ATM puts. If the asset crashes, the 2 puts more than cover the loss and generate profit. If the asset rallies, the spot position profits while the puts expire worthless. Cohen's portfolio protector that ALSO profits from crashes.

• Hold BTC/ETH spot position you wish to protect
• Buy 2 ATM put options (1 covers the spot, 2nd adds downside profit)
• Use 60-90 day puts for adequate time protection
• Best entry: when IV is compressed (cheap puts) before uncertain macro events
• Exit puts if asset rallies 15%+ and puts are deeply OTM

Buy a put below market + sell an ATM put + sell an ATM call + buy a call above market. Maximum profit when the asset expires exactly at the middle strike. Low entry cost. Cohen's favorite range-bound income structure.

• Identify tight consolidation zone with clear center (e.g., BTC at $100k support)
• Sell ATM put + ATM call at the consolidation center price
• Buy OTM put 10% below + OTM call 10% above (protection wings)
• Target: 30-50% of maximum profit, then exit early
• Immediately exit if underlying moves > 7% in either direction

Own spot crypto. Buy an OTM protective put (downside insurance). Sell an OTM call (finances the put). Protected downside at near-zero cost, capped upside. Cohen's Collar — the fortress for holding large crypto positions through uncertainty.

• Hold significant spot BTC/ETH position
• Buy OTM put at -10 to -15% below spot (insurance floor)
• Sell OTM call at +10 to +15% above spot (finances the put)
• Select strikes so put premium ≈ call premium (zero-cost collar)
• Roll monthly: close expiring options, open new ones 30 DTE out