18 Options Strategies Every Trader Should Know (With Emojis)
DeFi Options Trading Is Powerful!
There can be unlimited upside…😈
But also unlimited downside 😣
Every trader should know how to create these 18 options strategies in Panoptic for any crypto asset, any strike, any size👇
We'll cover:
- ⤵️
- 📞
- 🤸🏽♂️
- 🙅♀️😵
- 💎🦎
- 🦖
- 🥌🦋
- 📞🧈
- 🦸♂️🐂
- ⤵️🧈
- 🦸♂️🐻
- 🥌🦅
- 📅🧈
- ↗️🧈
- ⚖️🧈
- 🦇
- 🦓
- 🦓🦓🦓
Put ⤵️
Think HEX is worthless?
"Put" your money where your mouth is. Buy a "put"⤵️ Panoption!
- Substantial upside 😈
- Limited downside 😋
- Bearish ⬇️
Short LP position
Call 📞
Want to make a "call" that APE will go up?
Buy a "call"📞 Panoption!
- Unlimited upside 😈
- Limited downside 😋
- Bullish ⬆️
Short LP position + long asset
Straddle 🤸🏽♂️
"Straddling" the line b/c you can't tell if BLUR is going to go ⬆️ or ⬇️?
Buy a "straddle"🤸🏽♂️ on Panoptic!
- Unlimited upside 😈
- Limited downside 😋
- Delta neutral 🫥
Call + Put (same strike)
Strangle 🙅♀️😵
Feel like you're being strangled by excessive market volatility on SHIB?
Buy a "strangle"🙅♀️😵 on Panoptic!
- Unlimited upside 😈
- Limited downside 😋
- Delta neutral 🫥
Call (higher strike) + Put (lower strike)
Jade Lizard 💎🦎
Feeling a "little" bullish on UNI?
How about a "jade lizard" 💎🦎
- Limited upside 😋
- Substantial downside 😣
- Neutral-to-bullish ↗️
Short strangle + long OTM call
Big Lizard 🦖
A variation of 💎🦎 is the "big lizard" 🦖
Sell a straddle instead of a strangle on Panoptic! Useful when you believe the price will hover around the current price.
- Limited upside 😋
- Substantial downside 😣
- Neutral-to-bullish ↗️
Short straddle + long OTM call
Iron Butterfly 🥌🦋
Think LINK will stay rangebound?
Float like an "iron butterfly"! 🥌🦋
Like a 🦖, except you're protected on both sides.
- Limited upside 😋
- Limited downside 😋
- Delta neutral 🫥
Short straddle + long strangle
Call Spread 📞🧈
Bullish on ETH but don't expect a huge surge?
Buy a "call spread" on Panoptic! 📞🧈
- Limited upside 😋
- Limited downside 😋
- Bullish ⬆️
Long call (lower strike) + short call (higher strike)
Super Bull 🦸♂️🐂
Are you hoping for a "Better Tomorrow"?
How about a "Super Bull"? 🦸♂️🐂
Like a 📞🧈, but for the more bullish among us.
- Limited upside 😋
- Substantial downside 😣
- Super-bullish ⬆️⬆️
Long call spread + short OTM put
Put Spread ⤵️🧈
Anon "spreading" rumors that USDC is in trouble, but don't expect a huge drop?
Buy a put "spread" on Panoptic! ⤵️🧈
- Limited upside 😋
- Limited downside 😋
- Bearish ⬇️
Long put (higher strike) + short put (lower strike)
Super Bear 🦸♂️🐻
Look! Up in the sky! It's a bird! It's a plane!
It's "Super Bear"! 🦸♂️🐻
Like a ⤵️🧈, but for the more bearish among us.
- Limited upside 😋
- Unlimited downside 😳
- Super-bearish ⬇️⬇️
Long put spread + short OTM call
Iron Condor 🥌🦅
Think an "upcoming announcement" is gonna be a nothingburger? 🚫🍔
Take flight with a short "iron condor"! 🥌🦅
- Limited upside 😋
- Limited downside 😋
- Delta neutral 🫥
Short call spread + short put spread
Call Calendar Spread 📞📅🧈
Long-term bullish on ETH but need more capital?
Buy a "call calendar spread" on Panoptic! 📞📅🧈
- Limited upside 😋
- Limited downside 😋
- Delta neutral 🫥
Long long-term call + short short-term call (same strike)
How Panoptic's Perpetual Options Have Effective DTEs
Panoptic mimics payoffs from long-term expiries through wide-ranged LP positions.
For example:
- Narrow range (r = 1.087) ↔️ 1 day expiry
- Wide range (r = 1.6) ↔️ 1 month expiry
(Assuming 100% annual volatility)
Diagonal Spread ↗️🧈
A variation of 📅🧈 is the "diagonal spread" ↗️🧈
Also called a "Poor Man's Covered call" — useful when you expect minor price movement.
- Limited upside 😋
- Limited downside 😋
- Bullish ⬆️
Long long-term call + short short-term call (different strikes)
Call Ratio Spread 📞⚖️🧈
Neutral-to-bullish, with a price target for WBTC in mind?
Buy a "Call Ratio Spread" on Panoptic! 📞⚖️🧈
- Limited upside 😋
- Unlimited downside 😳
- Neutral-to-bullish ↗️
1 long call (lower strike) + 2 short calls (higher strike)
16. BATS 🦇
Expect some small price movement on LDO but not sure which direction?
Try "BATMAN" 🦇
- Limited upside 😋
- Unlimited downside 😳
- Delta neutral 🫥
Call ratio spread + put ratio spread
ZEBRA Spread 🦓
Want to go long?
A "ZEBRA spread" may be what you're looking for! 🦓
A synthetic replacement for longs: ~100 delta position with very low capital requirements.
- Unlimited upside 😈
- Limited downside 😋
- Bullish ⬆️
- Capital efficient 💸
2 ITM long calls + 1 ATM short call
ZEEHBS
Bullish, but want to hedge downside tail risk?
Try "ZEEHBS"! 🦓🦓🦓
- Unlimited upside 😈
- Limited downside 😋
- Delta neutral 🫥
Call ZEBRA spread + put ZEBRA spread, this one is special 🤪
Summary
Caveats:
- Panoptions are perpetual options with streaming premia rather than upfront premia, so payoff curves may differ from above
- Panoption premia depends on a number of factors including the underlying price path and LP width
Summary:
- ⤵️=Put
- 📞=Call
- 🤸🏽♂️=Straddle
- 🙅♀️😵=Strangle
- 💎🦎=Jade lizard
- 🦖=Big lizard
- 🥌🦋=Iron butterfly
- 📞🧈=Call spread
- 🦸♂️🐂=Super bull
- ⤵️🧈=Put spread
- 🦸♂️🐻=Super bear
- 🥌🦅=Iron condor
- 📅🧈=Calendar spread
- ↗️🧈=Diagonal spread
- ⚖️🧈=Ratio spread
- 🦇=BATS
- 🦓=ZEBRA
- 🦓🦓🦓=ZEEHBS
Disclaimer: 📢 None of this should be taken as financial advice.