"The initiative centers on two primary components: an income sleeve and a hedging sleeve. The income sleeve involves writing covered calls and call spreads against a defined share of Nakamoto's Bitcoin holdings, seeking to capture premiums from options markets where implied volatility often exceeds realized volatility."
"The hedging sleeve focuses on purchasing protective puts and put spreads, designed to offset potential losses during price declines, providing a buffer against adverse market moves. Premiums generated from the income sleeve may help fund the cost of these protective positions."
"Tyler Evans, chief investment officer of Nakamoto, stated that the firm views Bitcoin's implied volatility as a consistent source of opportunity, describing the program as a structured effort to convert that volatility into shareholder value while maintaining exposure to the underlying asset."
Nakamoto Inc. has initiated an actively managed Bitcoin derivatives program to capitalize on market volatility and mitigate downside risk. The program, operational since Q1 2026, complements Nakamoto's strategy of holding Bitcoin as a treasury asset. It employs a portion of Bitcoin holdings as collateral, managed by Bitwise Asset Management. The program consists of an income sleeve, which captures premiums from options markets, and a hedging sleeve, which purchases protective puts to offset losses. Premiums may be received in Bitcoin or U.S. dollars.
Read at Bitcoin Magazine
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