Ethereum Merge Brief Background Most people are aware of Proof-of-Work (consensus mechanism to validate blocks on the blockchain - this is done with miners solving math problems (work)).  Ethereum, the second largest Crypto Currency is moving from a Proof-of-Work to Proof-of-Stake (consensus mechanism that validates blocks through a validator (like voting) system).   The main reason for doing this is to get away from miners wasting electricity solving useless math problems to a system that doesn't waste energy on miners.   One argument against moving to Proof-of-Stake, is that it becomes more about controlling a large number of validator nodes (so in a sense, the larger validators have more say, whereas Proof-Of-Work rewards are more 'fair' as it is randomly distributed. Either way you look at it being positive or negative, it is an event that can be traded as the current estimated merge date (the date the blockchain switches from Proof-of-Work to Proof-of-Stake...

  The Setup purchased 100 shares of RCL @ $40 sold 35 25 Put Spread and a 40 Call Expiry August 19 for $5.00 the original post is here: https://www.unpackinvesting.com/2022/07/using-options-to-recover-from-big-move.html Management After a month holding and the stock rallying up to around $38, I closed the options for $2.28.  Even though I could have waited longer to see if it goes to zero, I would have much more increased gamma risk (gamma risk is changes in value with respect to stock price, it gets really big the closer it gets it expiration).  I collected a total of $5 - $2.28 = $2.72.  Which is just over 50% of the original option premium for holding the position for about 66% of the time.  Generally, when options get to within 2 weeks of expiring it is a good time to re-asses the structure and potentially close out the trade or roll the position further in time. Takeaway I originally purchased shares for $40, but the price quickly dropped with the volatili...