#Bitcoin has been trading sideways for over a week.
๐๐Looking at the daily chart we see that short term resistance is at 53,000 & support is at 50,800.
๐ก๏ธAt-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.
๐ข 2024-02-22, PUT, 50,587
๐ด 2024-02-22, PUT, 50,782
๐ด 2024-02-22, CALL, 52,977
๐ข 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