Crate Features

Common Crate Features

  • A real backtested hedging strategy
  • A calculated setup based on options chains.
  • Educational insights and risk ratings
  • The exact trade: entry, logic, and exit

Rare Crate Features

  • Generate income from owned stocks
  • Covered call strategies
  • Advanced risk management
  • Maximize your stock returns
Ground Strike
Cash Secured Put
Risk
Very Low
Reward
Low-Mid
Effort
Easy
Frequency
Often
Execution Complexity
Simple
The Skycap
Covered Call
Risk
Low-Mid
Reward
Medium
Effort
Medium
Frequency
Often
Execution Complexity
Moderate
The Chain Stack
Combo Spread
Risk
Medium
Reward
High
Effort
High
Frequency
Often
Execution Complexity
Hard
High Confidence

Tight spreads, strong volume, minimal slippage risk

Medium Confidence

Slight inefficiency, but may depend on market timing

Low Confidence

Theoretical only — spreads too wide or data delayed

Trading Confidence Levels

HIGH Confidence
This is a highly tradable arbitrage
Tight bid/ask spreads
Decent to high volume
Low slippage risk

Criteria:

  • Bid-Ask Spread ≤ 5% of Mark Price
  • Volume ≥ 100
  • Delta is cleanly in range (0.3-0.7)
  • IV is stable (not spiking intraday)
MEDIUM Confidence
Tradable with caution
Slight inefficiencies
May require order tweaking or limit entry

Criteria:

  • Bid-Ask Spread between 5–10%
  • Volume between 50–100
  • Less consistent fills or wider spreads
LOW Confidence
This is theoretical only
Wide spreads
Low or zero volume
Hard to execute profitably

Criteria:

  • Bid-Ask Spread > 10% of Mark Price
  • Volume < 50
  • Near-zero open interest or stale data

Trading Confidence Levels

1. Common Crate
(Cash-Secured Put)
  • Core Idea: Generate premium while setting aside cash to buy stock at a discount
  • Best For: Steady income, moderate bullish bias, safe entry points
  • Most Effective When: IV is elevated, Delta 0.30-0.45, solid volume
  • Risk Level: Low to Moderate — you're collateralized but still exposed to stock downside
2. Rare Crate
(Covered Call)
  • Core Idea: Earn income by selling calls on shares you own, capping your upside
  • Best For: Neutral-to-bullish markets, stocks you want to hold
  • Most Effective When: Moderate IV, Delta 0.25–0.40, strong open interest
  • Risk Level: Moderate — you limit upside but keep downside exposure on shares
3. Epic Crate
(Hybrid Hedged Combo)
  • Core Idea: Use option income to partially or fully finance directional hedged bets
  • Best For: Advanced setups like risk reversals, combos, or event-driven plays
  • Most Effective When: Implied volatility skew exists; balance Delta and Vega
  • Risk Level: High — layered trades require precise execution and carry combo risk