Will the #Bitcoin ETF news hit over the weekend? 🧐
If you don’t think it will, & with 7 day at-the-money IV breaking above 60 day ATM IV for the first time since October, now may be a good time to sell vol using a short expiration.
🟢 2024-01-07, PUT, 42,966
🔴 2024-01-07, PUT, 43,710
🔴 2024-01-07, CALL, 43,710
🟢 2024-01-07, CALL, 44,466
The payoff is over 2 to 1, & the premium you’ll collect on this short straddle with clipped wings will be juicy. 🥩
#DeFi #OptionsTrading #NFA
If you don’t think it will, & with 7 day at-the-money IV breaking above 60 day ATM IV for the first time since October, now may be a good time to sell vol using a short expiration.
🟢 2024-01-07, PUT, 42,966
🔴 2024-01-07, PUT, 43,710
🔴 2024-01-07, CALL, 43,710
🟢 2024-01-07, CALL, 44,466
The payoff is over 2 to 1, & the premium you’ll collect on this short straddle with clipped wings will be juicy. 🥩
#DeFi #OptionsTrading #NFA
In anticipation of the #Bitcoin ETF, at-the-money 7 day Implied Volatility on BTC is at its highest point in over a year. 🤯
Selling short duration call and put options is one way to take advantage of this spike in IV. 📈
You can define your risk by turning a short call or put into a spread. 🦿🦵
And DeVol is the only crypto platform that gives you the ability to trade short duration multi-leg option strategies in a single execution, eliminating leg risk. 🤌
Selling short duration call and put options is one way to take advantage of this spike in IV. 📈
You can define your risk by turning a short call or put into a spread. 🦿🦵
And DeVol is the only crypto platform that gives you the ability to trade short duration multi-leg option strategies in a single execution, eliminating leg risk. 🤌
Looking at the #Bitcoin daily chart, we see that the price has fallen back into the sideways channel it’s been in since early December.
The 21 day Exponential Moving Average was acting as support until the price sliced through it yesterday. :knife::chart_with_downwards_trend:
Now the 50 day Moving Average looks to be giving some support at 42,500.
If you wanted to express the opinion that the price will stay above the 50 day MA in the short term (and with 1 day at-the-money IV having fallen down to 33), you could buy a relatively inexpensive call spread.
🟢 2024-01-15, CALL, 42,508
🔴 2024-01-15, CALL, 43,489
#NFA
The 21 day Exponential Moving Average was acting as support until the price sliced through it yesterday. :knife::chart_with_downwards_trend:
Now the 50 day Moving Average looks to be giving some support at 42,500.
If you wanted to express the opinion that the price will stay above the 50 day MA in the short term (and with 1 day at-the-money IV having fallen down to 33), you could buy a relatively inexpensive call spread.
🟢 2024-01-15, CALL, 42,508
🔴 2024-01-15, CALL, 43,489
#NFA
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