Back Test Result
Our strategies are back tested over last 12 months data
We backtested our strike selection strategy using the last one-year data on ETH to see that our cash-covered puts only expired in the money 3 times out of a total of 53 times while collecting a nifty premium of $107 and significantly reducing the average accumulation price of Ethereum when the Delta was 0.1.
Even though the APY of this strategy is -9.73%, it is more than compensated by the accumulation of ETH at an average price of $1,886, given you bought ETH whenever the cash-covered put expired in the money. This is ~ 37.57% ($3,021-$1,886/$,3021 * 100) lower than the average accumulation price of $3,021 if you purchase ETH outright every week, making cash-covered puts the most economical way to accumulate blue-chip assets such as Ethereum and Bitcoin from a long-term perspective.
ETH Price vs Cash-Covered Put Option Strike Price
USD Premium Collected is $107
Equity Curve Without Compounding
Cash-Covered Put at Delta - 0.1 is a low-risk, medium-return strategy. This weekly strategy is live with BTC, ETH and MATIC as the underlying and USDC as collateral.