Long-Term VS Short-Term Investors
Updated: Feb 18
Looter's Strategy: Get airdrop and when the coin is on market sell the coins.
The looter strategy drops the price at the start of the market.
The question is how can we take advantage of it?
And there is a minimum quantity of Infinity to buy for this strategy to be optimal for call options!
For those who don't know yet what's Call Option! Click Here
Infinity Call Option Market
First of all, what is the call option market?
The market is 45,000 accounts received this opportunity (airdrop call option)
The first step of the strategy for the investors
1. Let the looters come to the market
2. As investors you need to know which quantity you need to make the call option strategy a success and try to pay them less price is possible on a market for this quantity
Looters create an opportunity for investors at the start of trading when the market is illiquid!
Which quantity of INFI do I need to secure the best return on Call Option?
Go to your wallet and open the call option
We're interested in Strike and Expiration
The Strike gives you the price in USD where you can buy the Call Option until the expiration.
My strike is 0.05 USD
Example: The market price goes to 0.20 USD per INFI before the expiration
This is very interesting because the market value of this call is
10,000 INFI * 0.20 = 2,000 USD
But the value of the call is 500 EDGE (USD)
10,000 INFI*0.05 = 500 USD
In this exemple the profit is 1,500 USD
How to increase this profit with the looter's strategy?
In this OrderBook the price for 10,000 INFI is 0.0000019 ETH per INFI
on the 11th Feb 2022 = 0.0059 USD
10,000*0.0059 = 59 $
The strategy is to buy 10,000 INFI
Then resell it at the price above 0.05 USD per INFI
In the example above at 0.20 USD per INFI
How many INFI I should sell to pay the call option?
Total Value in EDGE / 0.20
500 / 0.20 = 2,500 INFI
-I will convert 2,500 INFI in EDGE
-I execute my Call Option
-I receive 10,000 INFI
-I bought 10,000 INFI in 11th FEB for 59 USD
-I sold 2,500 INFI
- (10,000 INFI - 2,500 INFI) + (10,000 INFI form the call option) = 17,500 INFI
-Total profit is 17,500 INFI * 0.20 = 3,500 USD
If we compare in the first case we spend 500$ for 1500$ Profit
In the second case, we spend 59$ for 3,500 USD Profit
Check the best price
How to adjust the price on Folgory? Click Here
Look at the number of sellers going up
And the Price going Down
Then buy your 10,000 INFI at the best price.
Warning: The market is illiquid that's means the price can go up very fast.
The example here shows with only
1 ETH the price of INFI can take +100%
Let's go trade! Let's go traders
Notice: The example is a simulation to give you a basis for reasoning to allow you to create your own analyzes.