๐ Options Strategy
Last updated
Last updated
Mobyโs BOV employs a refined options strategy to provide sustainable rewards. With a spread-based approach, Mobyโs BOV effectively balances risk management and yield generation, capturing high returns through ultra-short-term (0โ1 day) options trades.
In its initial phase, Mobyโs Vault allocates a small portion of deposited assets as collateral, achieving additional returns through short-term Call and Put Spreads (Iron Condor strategy). By dedicating only 1โ3% of assets to these positions, Moby attains yield advantages over traditional DOVs, minimizing exposure while maximizing returns.
Looking ahead, Moby plans to introduce diverse vaults and strategies, including interest-based options strategies focused on principal protection and enhanced returns, alongside vaults linked to LST/LRT and Real-World Assets (RWA).
Leveraging our Synchronized Liquidity Engine (SLE) Model, Moby executes options at optimal points, with orders instantly filled to reach target contracts, ensuring capital efficiency. This model keeps exposure under 3% while delivering yield benefits that surpass conventional DOVs.
Simulations of our option spread selling strategy reveal a fairly linear increase in Max Return as the capital allocation ratio rises. The accompanying graph highlights this relationship, showing how changes in the margin proportion dedicated to options selling impact the Max Return.
To sustain and optimize returns, Mobyโs BOV will dynamically adjust the capital allocation ratio within a 1โ3% asset fraction, carefully considering both market conditions and Greeks risk. This adaptive approach is structured to maximize yield while maintaining minimal exposure.