Can someone explain the auto reinvest function from dual investment please?

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  • barefoot_au@alien.topB
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    11 months ago

    Well if we did eth now at 1850, and tomorrow eth only makes it to 1825. Then the 1850 dual investment will run again until success or you manually cancel.

  • brandnewpaint@alien.topOPB
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    11 months ago

    I mean. The dream would be to just bounce between, always being on the “winning” side… But

    • Netonai@alien.topB
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      11 months ago

      Simple advice : If you think you can always be on the winning side, you did not grasp something. ;)

      I’d also like to know more about this feature too thanks for asking !

  • Bright-Pollution-629@alien.topB
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    11 months ago

    Way I see it is dual investments are essentially cash secured puts and covered calls. If you have usdc or usdt and are okay with purchasing eth at 1800, you’re doing a cash secured put to purchase it at that price. The “premium” of that is the apr earned. Covered call is opposite way, you are okay if you sell eth at 1900 and will earn a premium on the pledged eth. These transactions clearly could be done with limit orders but with a limit order you won’t earn on the funds while waiting.

    Auto invest just keeps whichever instrument rolling, collecting premium each day without you having to re-select the option. I’d assume once the contract is exercised (ex. if buy eth at 1800 goes through) it wouldn’t auto invest back the other way. You’d have to go in and select the sell eth level that you desire and again enable auto invest for it

  • DDanny808@alien.topB
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    11 months ago

    If the option play you want doesn’t reach its desired mark, auto reinvest will automatically buy you another options contract after the expiration of the original if/when the original contract expires and doesn’t hit its mark!