Kosta Ouzas explains using Bitcoin as collateral for options trading, anchoring risk and position-sizing to wallet size and targeting 3–5% monthly returns. He recommends conservatively discounting Bitcoin’s value to a power-law support level to protect against statistically possible but low-probability downside moves, emphasizing safety-first risk management.
Using Bitcoin as collateral. We always discuss this. We just refer to the wallet size. So the wallet size is what we base percentages on our target of 3 to 5% per month. If you're using Bitcoin as collateral, we discount it. The safest way is to discount the value of it to the power law support, because at any moment our hypothesis is that the power law support could be hit because it's a statistical. It's a range that is statistically possible, even though not always probable, but it is possible. So we want to be as safe as possible at all times.
