The Singapore-based digital asset services provider announced the launch of high-yield Bitcoin products for consumers amid the ongoing bear market.
Flynt Launches High-Return Crypto Product
The crypto market is the go-to space for high-risk, high-return investment assets. This is primarily due to the volatile price movements of digital tokens. And controlling risks for such assets is daunting, especially for those without prior knowledge of the market.
Moreover, introducing high return yields of up to 50% APY has attracted consumers to the Flynt platform. High-yield enthusiasts are constantly looking for modest returns, especially during bearish downtrends.
Meanwhile, users’ most popular strategy when hedging their funds is to enter positions different from their existing asset holdings. This implies that a user can buy a put option while holding spot Bitcoin when downward price action is expected. Compared to futures, crypto options seem to be the best way users can hedge their volatile positions through ups and downs.
However, several structured products can yield when combined with options, futures, and lending. The most widely used structured product is the covered call strategy. Interestingly, even the cerebral investor Warren Buffett used this strategy to earn premiums on his Coca-Cola stocks.
Since last year, crypto service providers have considered offering covered call strategies on digital assets to yield-hungry investors.
Accordingly, the strategy has grown in the investment community and has performed admirably during the most recent downtrend.
Introducing the BTC Covered Call Strategy x5
Flynt Finance intends to unveil the Bitcoin-based structured product after a rigorous research and testing phase. Moreover, the strategy sells call options weekly and dumps the earned premium into the following weeks’ trading.
The Flynt team has extensive 3-year experience trading data with Deribit’s crypto-options platform. As a result, the team has developed a price selection protocol that minimizes losses and maximizes returns.
However, Flynt’s difference with Deribit is that it uses leverage to generate the best possible result. Here the company uses close to five times the leverage on its strategies to increase returns and reduce the chance of a loss. This is done by selecting an OTM strike price level.
Meanwhile, the result of Flynt’s backtest shows a 47% APR, which includes losses. The company’s near-perfect metrics are commendable compared to the industry’s average of 15% without losses.
CEO of Flynt Finance, David Seo, noted that the firm is designed to cater to those willing to take more risks for higher returns. Those not willing to take the plunge should do just fine with a non-leveraged covered call strategy.
Seo added that Flynt is committed to providing access to several crypto investment strategies for high-risk, high-return clients.
Meanwhile, Flynt currently provides Bitcoin covered-call strategies capable of generating up to 50% APY.