Crypto Options Grid Strategy

Systematic Theta Strategy with Synthetic Base

Strategy Overview

  • Combine synthetic long (buy call + sell put) with short perpetual(Delta-neutral synthetic base)
  • Systematically sell weekly options(call/put) for theta income
  • Use Perp only when assigned for delivery
  • Goal: steady theta income with minimal directional risk

Strategy Architecture

Core Components

LayerDescriptionObjective
Synthetic Long(1-2 months)Long Call + Short Put, same strike + Core short PerpCreate synthetic long exposure with short perp (delta-neutral base)
Weekly Short optionSell weekly call or putGenerate theta income
Trading Perp(conditional)Open only upon AssignmentSettle exercised options via delivery

Each week

  • Sell one weekly option(call or put)
  • Do not open any new perp unless that option finishes ITM
  • If exercised, use perp to delivery (short call -> short perp; short put -> long perp)

Weekly Option Cycle

  1. Sell weekly call
  2. If call expires OTM -> Keep premium
  3. If call ITM -> open trading short perp (delivery)
  4. Next week, sell weekly put (same strike)
  5. If put ITM -> open trading long perp -> close short
  6. Repeat cycle

Example Flow

WeekActionBTC CloseDeliveryOutcome
1Sell 100K Call98KNone+premium
2Sell 100K Call101KShort PerpDelivery + premium
3Sell 100K Put100KLong PerpClose short + premium

Summary

  • This strategy combines a synthetic long position with short perpetual futures to create a delta-neutral base, upon which a weekly options grid is systematically sold.
  • The structure profits primarily from time decay (theta) and range-bound price action, while dynamically using perpetual contracts for delivery when options expire in-the-money.
  • The key innovation is that no active delta hedging is performed — perpetual contracts are used only upon option assignment, making the structure highly capital-efficient and low-maintenance.

Real trade sample

Screenshot 2025-11-01 at 22.15.02 (1).png

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