In the turbulent waters of the cryptocurrency market, professional traders are like highly skilled surfers, not only navigating volatility but also adept at transforming it into a steady stream of profits. CoinEx Dual Investment is precisely the unique tool in their toolbox that refines market uncertainty into certain returns. This is not simply about holding and waiting for prices to rise, but a sophisticated art that integrates options strategies, market judgment, and capital efficiency.
Imagine a seasoned trader holding 10 Bitcoins who judges that the price is unlikely to break through the $80,000 mark within the next two weeks. Therefore, he sells a call option contract through CoinEx Dual Investment, setting the strike price at $80,000 and a term of 14 days. He immediately gains a premium of up to 36% annualized. If the Bitcoin price falls below $80,000 after 14 days, he secures this 36% annualized return; even if the price surges to $85,000, his Bitcoins will be automatically sold at $80,000. Combining the spot profit and the premium gain, his overall return is still far higher than simply holding the Bitcoins. Based on historical backtesting data, in market environments with a median volatility of approximately 55%, similar neutral strategies can achieve a win rate exceeding 70%.
Another common strategy is an evolution of the “covered call” strategy. When a trader is bullish on Ethereum’s long-term trend but believes a short-term pullback to $3,500 is likely, they can use CoinEx Dual Investment’s put option. They invest USDT, choose a strike price of $3,500, a term of 7 days, and immediately lock in an annualized return of approximately 25%. There are two possible outcomes: if the price of Ethereum is above $3,500 after 7 days, they receive their full USDT principal plus the 25% annualized return; if the price falls to $3,400, they will automatically purchase Ethereum at the agreed-upon price of $3,500 (equivalent to a discount to the market price), successfully buying at the bottom. This strategy transforms the time cost of “waiting to buy” in traditional trading into tangible returns, with annualized returns typically covering 5% to 8% of the price pullback risk.
Professional traders’ risk control is reflected in precise numbers. They don’t invest all their funds in products with a single maturity or strike price. A typical approach is to divide the funds into five parts, investing in products with maturities of 3 days, 7 days, 14 days, 21 days, and 30 days respectively, creating a “maturity ladder.” This way, on average, a portion of the funds matures every 3 to 6 days, providing continuous liquidity and reinvestment opportunities. According to portfolio theory, this diversification reduces the volatility of the investment period by more than 40%, while smoothing the overall yield curve.
A deeper application involves trading on volatility surfaces. Professional traders continuously monitor the difference between Bitcoin’s implied volatility and historical volatility. When implied volatility (i.e., the market’s expectation of future volatility) is significantly higher than the historical volatility of 60% over the past 30 days, they tend to sell a large number of options (through dual investment) to collect expensive time value premiums. For example, when market FOMO surges and implied volatility spikes above 100%, the annualized return from selling short-term options can momentarily exceed 80%. This is essentially shorting volatility, profiting from the premium of market panic. Looking back at the consolidation phases following several surges in the first quarter of 2024, this type of strategy provided astute traders with a stable cash flow of over 0.2% daily on average for several weeks.
CoinEx Dual Investment is a key piece of the puzzle when constructing market-neutral strategies. For example, a trader buys a certain value of Bitcoin in the spot market while simultaneously opening an equal short position in the futures market for Delta hedging, bringing the overall position’s market risk exposure close to zero. Then, using the Bitcoin held in the spot market, they continuously sell call options through Dual Investment. In this way, regardless of whether the market is sideways, slightly rising, or falling, they can earn the “strategy return” from the option premiums. Data shows that a perfectly executed market-neutral strategy combined with covered call can increase annualized returns from near zero to the 15%-30% range in low-trend markets.
Ultimately, for professional traders, CoinEx Dual Investment is far more than just a financial product; it is a highly efficient profit engine, a flexible risk management tool, and a litmus test for validating market views. It encapsulates complex options strategies into simple and easy-to-understand operations, allowing traders to focus on the core: accurate judgment of price, volatility, and time. Across a broad spectrum of annualized returns ranging from 5% to 80%, they adjust strike prices, expiration dates, and underlying assets, much like a composed Go player placing pieces on the chessboard of time to transform market volatility into stable returns.