Options Trading Simplified: How We Generate Your Returns

When people hear "options trading," they often picture complex charts and high-stakes Wall Street bets. But in reality, options are simply financial tools. When used in a structured, conservative way, they can be powerful instruments for generating consistent income.

At Eden Investments, we use two primary, time-tested options strategies to generate the attractive yields for products like our Eden Balanced Growth and Eden Principal-Protected Note. Let's break them down in simple terms.

Strategy 1: The "Sell High" Approach (Known as a Covered Call)

Imagine you own an asset, like shares of a company or a cryptocurrency like Ethereum (ETH). You're happy with its long-term potential, but you'd be willing to sell it if the price rose to a specific, higher target.

A covered call strategy is like getting paid to wait for that target price to be hit.   

• How it works: We sell a call option, which gives a buyer the right (but not the obligation) to purchase your ETH from you at a higher price (the "strike price") before a set date.   

• The benefit: For selling this option, we immediately receive a payment, known as a "premium." This premium is income for you, no matter what happens next.

• The outcomes:

  • If the price of ETH stays below the target price, the option expires, and nothing happens. You keep your ETH and you keep the premium you were paid.   

  • If the price of ETH rises above the target, the buyer will exercise their option, and you sell your ETH at that higher price—plus you keep the premium.

This is the core mechanic behind the "Sell High" strategy in our Eden Balanced Growth product. It’s a conservative way to generate extra income from assets you already hold.   

Strategy 2: The "Buy Low" Approach (Known as a Cash-Secured Put)

Now, imagine the reverse. You want to buy an asset like Bitcoin (BTC), but you believe its price might dip in the near future, and you'd prefer to buy it at a discount.

A cash-secured put strategy is like getting paid to set a "buy" order at that lower price.   

• How it works: We sell a put option, which gives a buyer the right to sell BTC to you at a lower, predetermined price. To make this a "cash-secured" and safe strategy, we set aside the full amount of cash needed to make the purchase.   

• The benefit: Just like with the covered call, we immediately collect a premium for selling this option. This is income for you, regardless of the outcome.

• The outcomes:

  • If the price of BTC stays above your lower target price, the option expires. You don't buy the BTC, but you keep the premium you were paid.   

  • If the price of BTC drops to your target, the option is exercised. You buy the BTC at the lower price you wanted—and the premium you received effectively makes your purchase price even cheaper.   

This is the principle behind the "Buy Low" strategy in our Eden Balanced Growth product. It allows you to earn income while waiting for the ideal moment to enter a position.   

Eden Makes It Simple

These strategies, used by professional investors for decades, are the engine behind many of our products. Our team manages these trades on established platforms like Bybit, navigating the complexities so you don't have to. With Eden Investments, you don't need to be an options expert to benefit from them. You simply choose your goal, and we put these powerful, income-generating tools to work for you.