Basis Cash was an algorithmic stablecoin very similar to UST that failed due to the death spiral problem. In interviews, Do spoke about Basis Cash as if it was someone else's project. Disclosure to investors that your team's model has collapsed once before matters.
ЁЯз╡ЁЯСЗ A compilation of why I believe Do Kwon is, at some level, personally responsible for the UST machine and owes something to people who lost millions in savings.
Not all the blame falls on him but these factors should be factored in ethically, morally, and legally. ЁЯз╡ЁЯСЗ
Basis Cash was an algorithmic stablecoin very similar to UST that failed due to the death spiral problem. In interviews, Do spoke about Basis Cash as if it was someone else's project. Disclosure to investors that your team's model has collapsed once before matters.
"Do Kwon understood exactly why what he built would someday collapse. And then misled people into financial ruin." - @scott_lew_is
Dazzling displays of confidence in a system he knew to be fatally flawed led the layman astray.
Throughout the last few months, Do cashed out hundreds of millions for "TFL operating expenses". Much of this went to his personal coffer. He encouraged Degenbox to bolster liquidity for the purpose of getting hard cash from LUNA and a little UST.
Do made the non-malicious but gravely incompetent move to pull out 3 billion dollars from the LUNA/UST machine into hard money all at once. This reduced liquidity and likely exacerbated the domino effect when everything toppled down.
While the LUNA machine came crashing down, Do announced that a recovery plan was in progress to recover the UST peg and collateralize UST. The layman believed that there was a plan in place and many held on tight.
On Agora, Do proposed that everyone should pack up and move to a new chain while airdropping tokens to old holders in the form of restitution. He did not suggest refunds of his own volition nor did he commit a dollar of his own money.
LFG's communications were very slow, and they raised more questions than they answered.
$2.7b+ disappeared into defending LUNA/UST. In a zero sum game this money had to go somewhere. Which VCs benefited from these trades, and were they TFL adjacent?
Yes and no. I don't believe Do knew any of this would happen so fast, but he knew it would happen eventually. I believe this collapse was indeed orchestrated by an outside attacker. But now the chickens have come home to roost.
Crypto is not going anywhere. We are here to stand and fight. TFL, are you with us or not?
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MASTER THREAD on Short Strangles.
Curated the best tweets from the best traders who are exceptional at managing strangles.
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тАв When to avoid
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How to sell Strangles in weekly expiry as explained by boss himself. @Mitesh_Engr
тАв When to sell
тАв How to do Adjustments
тАв Exit
Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in
1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr
тАв Sold Strangles 20% cap used
тАв Added 20% cap more when in profit
тАв Booked profitable leg and rolled up
тАв Kept rolling up profitable leg
тАв Booked loss in calls
тАв Sold only
2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.
тАв Identified a reversal and sold puts
тАв Puts decayed a lot
тАв When achieved 2% profit through puts then sold
Curated the best tweets from the best traders who are exceptional at managing strangles.
тАв Positional Strangles
тАв Intraday Strangles
тАв Position Sizing
тАв How to do Adjustments
тАв Plenty of Examples
тАв When to avoid
тАв Exit Criteria
How to sell Strangles in weekly expiry as explained by boss himself. @Mitesh_Engr
тАв When to sell
тАв How to do Adjustments
тАв Exit
1. Let's start option selling learning.
— Mitesh Patel (@Mitesh_Engr) February 10, 2019
Strangle selling. ( I am doing mostly in weekly Bank Nifty)
When to sell? When VIX is below 15
Assume spot is at 27500
Sell 27100 PE & 27900 CE
say premium for both 50-50
If bank nifty will move in narrow range u will get profit from both.
Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in
Few are selling 20-25 Rs positional option selling course.
— Mitesh Patel (@Mitesh_Engr) November 3, 2019
Nothing big deal in that.
For selling weekly option just identify last week low and high.
Now from that low and high keep 1-1.5% distance from strike.
And sell option on both side.
1/n
1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr
тАв Sold Strangles 20% cap used
тАв Added 20% cap more when in profit
тАв Booked profitable leg and rolled up
тАв Kept rolling up profitable leg
тАв Booked loss in calls
тАв Sold only
Sold 29200 put and 30500 call
— Mitesh Patel (@Mitesh_Engr) April 12, 2019
Used 20% capital@44 each
2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.
тАв Identified a reversal and sold puts
тАв Puts decayed a lot
тАв When achieved 2% profit through puts then sold
Already giving more than 2% return in a week. Now I will prefer to sell 32500 call at 74 to make it strangle in equal ratio.
— Mitesh Patel (@Mitesh_Engr) February 7, 2020
To all. This is free learning for you. How to play option to make consistent return.
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