#Bitcoin is knocking on new all time highs!
๐On the new episode of
Crypto Options Action, Jordan & JC study the price charts and vol surface in order to profit from the volatility.
The team thinks a breakout to new highs is less likely to happen over the weekend due to the lack of buying pressure from the spot ETF over the weekend, and the fact that in previous cycles BTC has taken a minimum of a few weeks to make new highs.
The 2 day implied vol on the DeVol platform is currently lower than on other platforms, which means buying options is cheaper than it should be.
Given this info, and the fact that BTC could still break out with conviction at any moment, they decide to execute a long butterfly spread that expires on 03/10.
๐ด 2024-03-10, PUT, 66,425
๐ข 2024-03-10, PUT, 68,792
๐ข 2024-03-10, CALL, 68,792
๐ด 2024-03-10, CALL, 70,931
Max profit is below 66,426 & above 70,931
Breakeven is 67,410 & 70,175
Max loss is 68,792
#DeFi,
#OptionsTrading,
#NFA