The Milk Road Show The One Metric Investors Must Watch to Understand Crypto’s Next Move w/ Nick Forster
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Jan 28, 2026 Nick Forster, founder and CEO of Derive and on-chain options builder, walks through why options markets reveal crypto’s next moves. He covers market structure shifts, why options matter beyond leverage, how to read option boards and implied volatility, and how concentrated flows and hedging can drive big price moves.
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Options Offer Asymmetric, Liquidation-Free Upside
- Options add expressive power beyond perps by letting traders make directional, hedging, and asymmetric bets without liquidation risk.
- Options reward being more correct: payoff grows nonlinearly versus linear perp returns.
Know Your Edge Before Trading Derivatives
- Only trade derivatives if you can clearly state your edge and why the market is wrong about that view.
- Use options for defined, non‑liquidating exposure or to generate yield from collateral when you understand the risks.
Concrete Call Option Example For Bitcoin Bull Thesis
- Buying a June call with a 110K strike lets you control upside to 150K without posting full spot and without liquidation risk.
- The buyer loses the premium if BTC stays below strike at expiry but can trade the option before expiry.