The market’s future expectation of volatility is now lower post ETF, and #Bitcoin at-the-money IV’s have been crushed.
Buying vol has become a lot cheaper. 🤑
Looking at the price chart, we see the BTC has bounced off the bottom of the sideways channel it’s (mostly) been in since early December. 📉📈
If you think the bounce will hold over the next 2 days, you could buy an ATM short duration call spread that gives you a risk/reward profile of 2:1.
🟢 2024-01-21, CALL, 41,578
🔴 2024-01-21, CALL, 42,953
#NFA #OptionsTrading
Buying vol has become a lot cheaper. 🤑
Looking at the price chart, we see the BTC has bounced off the bottom of the sideways channel it’s (mostly) been in since early December. 📉📈
If you think the bounce will hold over the next 2 days, you could buy an ATM short duration call spread that gives you a risk/reward profile of 2:1.
🟢 2024-01-21, CALL, 41,578
🔴 2024-01-21, CALL, 42,953
#NFA #OptionsTrading
Today, the two DeVol #Bitcoin pools have each doubled in size from 20K to 40K USDC. 🦾
This increase represents a big first step in giving users the ability to execute larger multi-leg trades.
We welcome our new LPs who have made this increase possible. 🤝
Each pool backs a unique expiration date, & the pools are open for anybody to provide liquidity & generate passive yield.
More increases will be announced soon. 🫧
This increase represents a big first step in giving users the ability to execute larger multi-leg trades.
We welcome our new LPs who have made this increase possible. 🤝
Each pool backs a unique expiration date, & the pools are open for anybody to provide liquidity & generate passive yield.
More increases will be announced soon. 🫧
Bitcoin has fallen a little below the 21-day exponential moving average (42,400) which has acted as support for over a week.
43,300 has acted as resistance since mid January.
If you believe that BTC will recover & stay within this range of 42,400 - 43,300 within the next 2 days, you could use short duration options to express this specific point of view.
🟢 2024-02-07, PUT, 42,256
🔴 2024-02-07, PUT, 42, 382
🔴 2024-02-07, CALL, 43,273
🟢 2024-02-07, CALL, 43,402
Max gain from 42,383 - 43,273
Breakeven points = 42,311, 43,347
Max loss < 42,257 or > 43,402
This is called an iron condor, and you can trade all four legs in a single execution only on DeVol, saving time and eliminating leg risk. 🤌
43,300 has acted as resistance since mid January.
If you believe that BTC will recover & stay within this range of 42,400 - 43,300 within the next 2 days, you could use short duration options to express this specific point of view.
🟢 2024-02-07, PUT, 42,256
🔴 2024-02-07, PUT, 42, 382
🔴 2024-02-07, CALL, 43,273
🟢 2024-02-07, CALL, 43,402
Max gain from 42,383 - 43,273
Breakeven points = 42,311, 43,347
Max loss < 42,257 or > 43,402
This is called an iron condor, and you can trade all four legs in a single execution only on DeVol, saving time and eliminating leg risk. 🤌
#Bitcoin has been holding around 52,000 for several days.
Looking at the charts, we see that this area acted as resistance in September and December 2021. 📉
We also know that US markets will be closed on Monday in observance of a holiday, and BTC ETF inflows won’t resume until Tuesday. 🤔
Based on this information, if we believe BTC will stay below 52,000 for the next few days, we could either:
Sell a 2-day call spread or buy a 2-day put spread.
Here’s an example of the short call spread on DeVol:
🔴 2024-02-18, CALL, 51,857
🟢 2024-02-18, CALL, 52,043
Max gain < 51,857
Breakeven = 51,932
Max loss > 52,043
Here’s an example of the long put put spread on DeVol:
🟢 2024-02-18, PUT, 51,671
🔴 2024-02-18, PUT, 51,302
Max gain < 51,303
Breakeven = 51,500
Max loss > 51,672
#DeFi, #Options, #NFA
Looking at the charts, we see that this area acted as resistance in September and December 2021. 📉
We also know that US markets will be closed on Monday in observance of a holiday, and BTC ETF inflows won’t resume until Tuesday. 🤔
Based on this information, if we believe BTC will stay below 52,000 for the next few days, we could either:
Sell a 2-day call spread or buy a 2-day put spread.
Here’s an example of the short call spread on DeVol:
🔴 2024-02-18, CALL, 51,857
🟢 2024-02-18, CALL, 52,043
Max gain < 51,857
Breakeven = 51,932
Max loss > 52,043
Here’s an example of the long put put spread on DeVol:
🟢 2024-02-18, PUT, 51,671
🔴 2024-02-18, PUT, 51,302
Max gain < 51,303
Breakeven = 51,500
Max loss > 51,672
#DeFi, #Options, #NFA
#Bitcoin has been trading sideways for over a week. 📉📈
Looking at the daily chart we see that short term resistance is at 53,000 & support is at 50,800. 🛡️
At-the-money implied volatility for the 2024-02-22 expiration is 50.
If you believe BTC will stay range bound within the next two days, you could simultaneously sell a call spread & a put spread on DeVol, collecting both premiums.
🟢 2024-02-22, PUT, 50,587
🔴 2024-02-22, PUT, 50,782
🔴 2024-02-22, CALL, 52,977
🟢 2024-02-22, CALL, 53,181
This four-legged option strategy is called an iron condor, & it will be profitable if the price stays between 50,709 and 53,049 by expiration in less than 2 days.
Max gain > 50,783 & < 52,978
Breakeven = 50,709 & 53,049
Max loss < 50,588 & > 53,182
#DeFi, #Options, #NFA
Looking at the daily chart we see that short term resistance is at 53,000 & support is at 50,800. 🛡️
At-the-money implied volatility for the 2024-02-22 expiration is 50.
If you believe BTC will stay range bound within the next two days, you could simultaneously sell a call spread & a put spread on DeVol, collecting both premiums.
🟢 2024-02-22, PUT, 50,587
🔴 2024-02-22, PUT, 50,782
🔴 2024-02-22, CALL, 52,977
🟢 2024-02-22, CALL, 53,181
This four-legged option strategy is called an iron condor, & it will be profitable if the price stays between 50,709 and 53,049 by expiration in less than 2 days.
Max gain > 50,783 & < 52,978
Breakeven = 50,709 & 53,049
Max loss < 50,588 & > 53,182
#DeFi, #Options, #NFA
Advantages of the Bull Call Spread
A bull call spread is constructed by buying one call option and selling another call option further out of the money.
It’s a bullish strategy, similar to simply buying a call, but the max you can earn is limited to the width of the spread minus the amount you pay for the spread. The max you can lose is the price you pay for the spread.
Call Spread Pros:
🟢 A bull call spread has a higher chance of breaking even and being profitable than buying a call by itself.
🟢 Bull Call spreads have a much higher return potential.
🟢 The call spread will have much less exposure to losses from the passage of time.
Call Spread Cons:
🔴 The bull call spread has limited profitability if the price of the underlier blasts off to the moon before expiration.
Final Verdict - The Bull Call spread is better than simply buying a call.
DeVol is the only crypto options platform that allows you to trade #Bitcoin call spreads, or any type of multi-leg strategy, in a single execution.
A bull call spread is constructed by buying one call option and selling another call option further out of the money.
It’s a bullish strategy, similar to simply buying a call, but the max you can earn is limited to the width of the spread minus the amount you pay for the spread. The max you can lose is the price you pay for the spread.
Call Spread Pros:
🟢 A bull call spread has a higher chance of breaking even and being profitable than buying a call by itself.
🟢 Bull Call spreads have a much higher return potential.
🟢 The call spread will have much less exposure to losses from the passage of time.
Call Spread Cons:
🔴 The bull call spread has limited profitability if the price of the underlier blasts off to the moon before expiration.
Final Verdict - The Bull Call spread is better than simply buying a call.
DeVol is the only crypto options platform that allows you to trade #Bitcoin call spreads, or any type of multi-leg strategy, in a single execution.
#Bitcoin continues to chop sideways.📉📈
DeVol Analytics shows that implied volatility is higher than realized vol by 33 points. 🤯
Volatility is known to cluster, so selling vol could be a good short term strategy.
The daily chart shows resistance at 53,000 and support at 50,800. 🛡️
Based on this info, the team executes a multi-leg options strategy known as a butterfly spread on Crypto Options Action. The trade profits if BTC stays between 50,432 & 52,830 by expiration on 02/24. Max profit is at 51,631. ⏱️
#DeFi, #OptionsTrading, #NFA
DeVol Analytics shows that implied volatility is higher than realized vol by 33 points. 🤯
Volatility is known to cluster, so selling vol could be a good short term strategy.
The daily chart shows resistance at 53,000 and support at 50,800. 🛡️
Based on this info, the team executes a multi-leg options strategy known as a butterfly spread on Crypto Options Action. The trade profits if BTC stays between 50,432 & 52,830 by expiration on 02/24. Max profit is at 51,631. ⏱️
#DeFi, #OptionsTrading, #NFA
YouTube
Bitcoin trades rangebound while TradFi rips higher! Will BTC break to the upside or downside?
The team decides to take advantage of the sideways price action by executing a delta neutral option strategy on DeVol. The trade, known as a butterfly spread, will be profitable if Bitcoin stays within a price range by expiration in less than two days.
…
…
#Bitcoin surges higher! 📈
Check out this week’s episode of Crypto Options Action where we
review last week’s successful short butterfly strategy, then dive into the charts & vol surface to plan a new options trade on DeVol.
With resistance at around 65K, & buying pressure high due to the spot ETF, the team decides to execute a 60,404 / 64,405 call spread that expires on 03/01. ⏱️
Max profit is above 64,406
Breakeven is at 61,389
Max loss is below 60,405.
#DeFi, #OptionsTrading, #NFA
Check out this week’s episode of Crypto Options Action where we
review last week’s successful short butterfly strategy, then dive into the charts & vol surface to plan a new options trade on DeVol.
With resistance at around 65K, & buying pressure high due to the spot ETF, the team decides to execute a 60,404 / 64,405 call spread that expires on 03/01. ⏱️
Max profit is above 64,406
Breakeven is at 61,389
Max loss is below 60,405.
#DeFi, #OptionsTrading, #NFA
YouTube
Bitcoin surges higher! How long before it breaks out to new all time highs?
The team reviews last week's successful short butterfly strategy, studies the Bitcoin charts & vol surface, and executes a new multi-leg option trade on the DeVol platform.
None of the content in this video should be considered financial advice. As always…
None of the content in this video should be considered financial advice. As always…