 I've discovered a cheat code in crypto that nobody is talking about. This strategy has been making me passive income. I'm talking about up to 20% returns monthly on the crypto that I already had sitting in my wallet. And no, I didn't have to stake it. I didn't have to jump into high yield scams. I didn't need to farm it and I didn't even need to trade. I did it using a simple strategy that has been used in traditional finance since 1973. And moreover, so far in 2024, I've had a 100% win rate. And I'm currently on a 50 trade winning streak. Trust me, I know. It's hard to believe. So I will show you proof of these claims in my current trading account, not just screenshots, but I will show you my account live. By the end of this video, you too will be able to begin to earn passive income on the crypto that you already own. And I'm talking about returns between 10 to 20% per month. We're of course talking about selling options for weekly and monthly passive income. I will guide you in this simple step-by-step tutorial on exactly how to set up your account to begin selling options. How to find the option contracts with the highest probability of winning that has led me to have a 100% win rate in 2024. And exactly how to open, manage and close your position so that you don't make the costly mistakes that literally cost you thousands of dollars. So stick around to the end of the video. And if at any point during the video, you find yourself saying, Hey, this guy's not that bad. And make sure to give it a thumbs up and subscribe to the channel. What's up guys? My name is Jay and welcome to Bitcoin Daily, your go-to source for all things crypto. In today's video, we will be showing you guys exactly how to sell Bitcoin options for passive income using my preferred exchange bybit. And I'll get a little bit more into why I prefer bybit over the other exchanges later on in the video. And I do understand that some of you might not be able to have access to bybit due to your locations. So I did some research and found some other exchanges that you can also sell options on. Here's what I found. Currently, there are six exchanges that offer option trading, Bybit, Derabit, OKX, Bit.com, Delta Exchange and Binance. The issue here is that they all require KYC. So for those of you who can't trade on one of the exchanges, there is another option, decentralized exchanges. I only found two DeFi exchanges where you can trade options similar to what I am showing you today, Lyra Finance and Risk Finance. Out of these two, I do prefer Lyra Finance because you get rewarded in Lyra tokens for every dollar that you pay in fees. However, these are a bit limited when it comes to liquidity. So because of that, I recommend you guys use one of the previous mentioned exchanges if possible. Link to all of these will be in the description. Now, if you're new to selling options or maybe you've never heard of it before, I recommend watching this video where I do a deep dive on exactly what it is and how it works. So because we're in crypto, where there's tons of high yield scams, staking scams, lending and borrowing scams, one of the main questions that I get all the time is, is it sustainable? And the answer is yes. The reason why is because traders love speculating on prices by trading options. So there will always be a trader willing to pay a fee to trade the option contract. We make money from the fees known as premium that these traders are paying on every single trade. So all we have to do is look for far out of the money contracts that price is unlikely to reach and collect those fees as the contracts expire with no value for the trader due to the price not reaching their wishful targets. So for example, if I wanted to sell this strike price right here, which is $52,000, the current premium on it is right here $250. So that means that we will get paid $250 since we're selling a put option contract as long as the price of Bitcoin doesn't reach $52,000 by its expiration date, which is the 8th of March. So why don't traders just sell options if it's easier? Well, it's usually because either one, they have no idea it exists. Two, it might be too complicated for them or might seem too complicated. Or three, maybe they're just greedy. There's more upside in buying calls and puts than selling calls and puts. Of course, they think they can outperform the collection of the premiums. And that's why they don't do it. And I'm talking to you guys from experience. I've been doing this for over 15 years now. Last year, I tracked every single trade that I made. And I had a win rate of 67%, which is in line with my average, which is around 70%. Now, compare that to options. I've only been doing it in crypto for about four months now. And my win rate is currently over 92%. The last loss I had was in December 12th of 2023. You can see the date that I closed it here. And you can see it was a loss of $66. Ever since then, I won 13 trades in a row to close out 2023. And I've now won 38 trades in a row to start off 2024. That's a 51 trade win streak. I've literally yet to lose a trade in 2024 when it comes to selling options. I'm currently averaging about 23% return per month in the first two months of 2024, as of this recording. Guys, that is unheard of in any other type of trading. So the question is, why is nobody talking about this in crypto? Well, unless you've spent a large amount of time in traditional finance, you probably won't even know it exists. Some of the biggest hedge funds in the world, like JP Morgan, have covered call ETFs that pay out monthly dividends of around 1% per month. If you look at JP Morgan's covered call ETF, they currently have over 32 billion assets under management. If this strategy didn't work, they wouldn't have that much money. And I'm teaching you to do exactly what they're doing, but even better. If you look it up on YouTube, you will find hundreds of videos about selling covered calls for income, but in crypto, just this video. We are ahead of the game by miles right now, and it's not even close. And my favorite part about this strategy is that in Bybit, they have what's called a unified wallet, meaning that you can use any funds in that wallet as collateral for your trades. What exactly does this mean? I'm making income off of the crypto that I already own. I don't need to sell it. I don't need to have it in USDT for collateral, which some of these other exchanges do require. This is why Bybit is by far the best exchange to trade options on. So now let's go ahead and dive in on exactly how to do this on Bybit. And even if you're using a different exchange, the ideas and the concept is exactly the same as long as they allow you to sell options on it. So first of all, you will need a Bybit account. You will need to fund it, deposit money, and put it in your unified account. So if you don't have a Bybit account yet, I'll put a link in the description below so that you can get a deposit bonus on your initial deposit. Now that we're signed up, funded, and logged in, that will take you to the homepage. That's going to look something like this. What you're going to want to do is go up here to derivatives and down to USDC options. Go ahead and click that. Now this is your options trading page. This is where you will make and see all of your trades when selling options. So let's go over the main things on the page that we need to know. So first, what we're looking at right here is called the option chain. This displays important market information related to the option contracts. So we always begin at the top and work our way down when looking at the option chain. So let's say we're looking to sell an option on Bitcoin. So the first thing we're going to do is go up here to the top. We're going to choose BTC options. Next, we must select an expiration date. Now the closer to expiration you are, the higher the risk. So I tend to look for options usually at least a week away and up to about 60 days away. I usually don't go much further than that. So up here, you can see the date for every single expiration. We're going to go ahead and pick March 8th. You can see we now have the 8th of March selected and it even tells us how much time we have here, which is just over eight days. So now let's get into the important factors here on the option chain. You will always see the split in two just like this with the price right in the middle. The left side is for calls. You can see it right here. And the right side is for puts. You can see that right here. The simplest way to wrap your head around this idea is that you're going to sell a call if you don't think BTC price will go beyond a certain price to play the upside by this expiration date. And you will sell a put option if you don't think that BTC price will fall below the price by the expiration date. And I think the best thing that you can do when deciding between selling a call or selling a put is to trade with the trend and not against it. This is a hard lesson that I learned in December when Bitcoin went from $35,000 all the way up to $44,000. I was playing end of the month calls that ended up in the red big time. The cool thing is that I was able to roll those positions back to a later date and a different price to make that money right back, but we'll get a little bit more into that later on in the video. So ever since then, I started only taking positions with the trend and not against it. Ever since, I haven't had a losing position and I am on a 51 trade winning streak. So with that in mind, we will mostly be focusing on the put option side of the option chain. Now, when it comes to choosing a strike price, you will need to know some basic market analysis to have the best probability of winning. But if I was to give you one thing to always look at here when choosing a position is the Delta. Now, what is Delta? Delta is one of the four measures that option traders use to analyze risk. The higher the Delta, the riskier the contract is. So we're usually looking for contracts that have a Delta of 0.3 or less. For puts, it will always be minus 0.3 or less. And for calls, it'll always be 0.3 or less. Use that together with some technical analysis of the price and you can find yourself some good spots to get into. The final thing that we will look at here is the bid price. This is the premium that the contract will pay you. So the higher the bid, the more money you will make by selling this option contract. But notice, as the premium that the contracts pay go up, so does the Delta on the other side, aka the risk. So you need to find a balance and not make decisions solely on the premium that the contract is paying out. So after analyzing the charts, analyzing the Delta and comparing it to its premium that it's paying out, I've decided that a strike price at $52,000 is a contract I'd like to take. Let's take a look at it. Looking at the chart, $52,000 is a big level of interest for Bitcoin making it a big level of support. So if there is a pullback from its current price, there's a good chance that price bounces right back up. All we need is for the price to stay above $52,000, by the expiration date, which is in about a week, to get paid those juicy, juicy premiums. Remember, we are selling puts, so we're betting that the price will not fall below the strike price, by the expiration date. Taking a look at the Delta, we see that it is 0.07. This obviously meets the criteria of being under 0.3 Delta, and the closer it is to zero, the less risk this contract carries. Finally, looking at the current bid price for this contract, you can see that it is currently paying $215 in premium for every contract that you sell. So once we're ready to set up our order, we're going to click on it, and this is going to pop up here on the right. It's going to look a little bit different on mobile, but this is our order placement page. Now, the first and most important thing you must do on this page is switch from buy to sell. I know it's a bit counterintuitive, which is why 99% of traders don't know this exists. If you do not do this, you will not be selling options and collecting premium. You will be buying options and paying premium. Next, we have to set an order price. If you want to make sure that you get filled, just set it to the current bid price that you can see here on the left in the green. Now you see our order price is the exact price as the green one here, even though it might be changing often. How often it changes is based on the current volatility. Now we're ready to set up our quantity. This will be how many contracts you will be selling. Remember, we're making $215 per one contract that we sell. The value of the contract will always be different, depending on different variables, but usually it's about 10% of Bitcoin's price. So at current prices for every one contract, you will probably need around $6,000 in collateral. The great thing about crypto is that you don't need one full contract. If you're starting with a smaller bankroll or if you're new, I recommend you to start with partial contracts. We can do 0.1 of a contract, which will pay us of course a tenth of the value of the contract. So let's do some quick math real quick on the ROI of this contract. If we entered this trade today for one contract which will cost us about $6,000 for eight days for a return of $225, that would be a 3.75% return on investment. And if we annualize it, that's a potential return of 436% in a year. Now adding the potential of the crypto that's already in your wallet being used as collateral, and we're talking about probably a 10X at the minimum at this rate. This is what I am teaching you guys today because currently these returns are insane. And I really don't know how long these returns will last for at this high. So we definitely have to take advantage of it. So now we have our contract order price and quantity. If we scroll down to the bottom, we can see this P&L probability calculator. And this basically shows that as long as a price stays above $52,000, which is our strike price, we will make a profit of $225. Doesn't matter what price Bitcoin is during that time. But if it were to go beyond $52,000, you can see that even at $51,800, we'd still make a profit of $25. But if it went beyond that, then that's when we would start losing money. And of course, if you don't manage your trades, the losses can get really big. So risk does come with selling option contracts if you don't manage your positions correctly. Once you're ready to sell the contract, just hit place order and you're all set. So now let's talk about closing out your contracts on Bybit. And I say it like this because this is one of the more frustrating, confusing parts about using the Bybit exchange. So make sure you listen to this part very, very carefully and take notes so that you don't lose out on money just like I did. So I love trading options on Bybit for all the options that I've already mentioned in this video. But this is one of the big drawbacks that Bybit definitely, definitely needs to fix. So first off, to see your positions, your active orders, your current orders, your order history, everything on desktop, very, very simple, right? You can see them all right here, every single position, the profit, the fees, everything. But on mobile, it is hidden for some reason with no obvious tabs or areas where to go to look at your active orders, a big UI flaw. You need to go to derivatives, then to options, then you see this random box up here on the right corner that looks like nothing important. Yup, that's where you see your orders. Once you hit that, then it should automatically land on positions which are your active orders. Now one thing to note that when you make profits or losses in your option contracts, this shows up in your unified wallet under USDC. So if you go back to your unified wallet, you will see your profits here under USDC. Now you can grab those profits and put them in Bitcoin, Ethereum, or any other crypto that they have available here. Now if you want to see your profits and loss is by going here to trading performance. And here it should show you your total P&L for the date. So you can put whatever date you want there and you'll see all of your closed contracts and how much money you made from each, what were the fees. So the way that Bybit has it set up when looking at your open positions, it shows you your unrealized P&L based on the mark price. Now the mark price is an average of the bid and ask price. So when we go to close, let's say we hit limit, the price auto populates to the ask price. And sometimes the ask price could be very, very different from the mark price. Now you have to pay attention because looking at this, it shows me $917 profit. Now when I go to close it, it changes the price and it shows me $861 in profit. Now if we change this down to where the mark price is, which is 135, now we're seeing the actual real value here of what the mark price is showing us. So let me tell you guys a cautionary tale. I had a position once that was over, I think it was about $1,800 or maybe $1,000, I don't know, something close to $1,000, let's say $1,000 in profit. There was a lot of volatility during that time, right? So I went to close it and I tried to close it really fast. So what I did, I just hit close because on the mobile app, it only says close buy and whatever price it popped up here, I hit confirm, right? The issue was that the prices were so drastically different that the price that it ended up selling at, that which it auto populated on, ended up closing my trade at $800 loss. So how do I go from being up in unrealized profits, up $1,000 to losing $800 when I hit the close at the price that it auto populated at? I don't know, I tried to contact them and they couldn't really give me answers, but it was an expensive lesson that I learned and a mistake that I never made again. So before closing your order, take a look at the mark price and take a look at the auto populated price that it gives you here. Another thing to know is don't rely on where it says expected profit is on the bottom because a lot of the times that's not accurate until you actually manually change the price yourself. Again, none of these are deal breakers for me and I get around them just fine after the very, very expensive lesson that I learned. Just make sure to always pay attention to that so that you don't make the same mistake that I made. So as I promised, I'm going to show you my P&L live here right now for you guys. Here we are on Bybit. I'm going to trading performance here and you can see that currently in the last week, which is automatically what gets put here as the timeframe. I've made $5,235. I've taken, well, I've closed five trades with a 100% win rate and if we change this, the furthest back that lets you go is to the 17th or the 18th of January. So we go to the 18th of January all the way till today. Today is the 20th and then here we go for that timeframe. P&L currently up over $30,000 in that timeframe. I've closed 36 total orders. I have a win rate of 100%, 36 wins and zero losses. And you can see every single order that I've taken here with the exact amount that I've made, the fees and everything else that you need there. You can see my biggest winners here in that timeframe as well. I had my biggest winner being $37.58 in January. I also personally like to track all of my trades in a Google Sheet as you can see right here. And I have yet to lose a trade in 2024. You can see that with the win rate 100% here. Now, Bybit doesn't have this feature currently like the major exchanges do, but it's basically called rolling the option. Although they don't have this feature, we can do this manually. Rolling an option essentially means you're closing your current option position and simultaneously opening a new position often with a different strike price and expiration date. This move is typically made when the current market situation starts to move against your initial trade setup. So as long as the new position you open covers the loss on your current position, it cancels out the loss as long as the price stays within your strike price by the new expiration date. I'll soon do another video going more in depth on exactly how this works, why it works and how to execute it properly. So that's it guys. There you have it for the first time ever on the first crypto channel ever, how to sell options to generate passive income on the crypto you guys are already holding for your long term. I know it took me a bit to get this out. It's a lot of information and I wanted to make sure that I had it right for you guys. Now if you want to be guided step by step and kind of hold your hand through the process of you know setting up your trades, well there's an option for that as well. I know that one of the best ways for me to personally learn how to do certain things that I don't really know about is by watching somebody else do them. So that's pretty much exactly what I created for you guys. You guys have the opportunity to subscribe to my options discord channel where I share the exact positions I'm taking every single day. Not only are you going to learn from me and be part of a growing and dynamic community but you're also going to make money. That's a win-win if I ever saw one. We also offer leverage signals, signals from an algorithm which has a 80% win rate and we just introduced the auto trading bot for the algo signals which you just set and forget. The bot literally makes all the trades for you. So if you guys are interested in joining the team, literally the only group in the world that's offering these type of services, I guarantee there's no other trade group out there right now offering how to sell options and option signals and auto trading bots and all of this together, right? So if you're interested in this, just go to the link in the description below. I hope to see you guys there and also if you want a deeper dive on exactly how to sell options and how it works, you know the inner workings behind it, why it works and all of that, then click on this video on the screen right now. I'll see you there, peace and love.