Research Summary
The report discusses the current bearish market of Bitcoin (BTC) and suggests a Bull Put Spread strategy for traders to capitalize on the anticipated price action. The strategy involves selling a higher strike Put option and buying a lower strike Put option. The report also provides a step-by-step guide on how to execute this strategy on Deribit.
Key Takeaways
Bitcoin’s Market Position
- Current Market Status: The report notes that Bitcoin has reached a crucial support zone around $62,000 after a bearish market. This has led to potential bounces and high implied volatility, particularly in the $60,000 strike for the 28 June options expiry.
Bull Put Spread Strategy
- Strategy Explanation: The Bull Put Spread strategy involves selling one short Put with a higher strike price and buying one long Put with a lower strike price. Both Puts have the same underlying and the same expiration date. This strategy is recommended for traders who believe BTC can pause at current levels.
Trade Structure
- Trade Details: The report suggests selling 1x BTC-28JUN24-$60,000-P @ $870 and buying 1x BTC-28JUN24-$58,000-P @ $377. The target is a spot level greater than $60,000, with a maximum profit of $493/BTC.
Market Analysis
- Market Outlook: The report anticipates potentially choppy days ahead for Bitcoin if there isn’t a sharp move from the current support areas. It also highlights the high implied volatility observed in the $60,000 strike for the 28 June BTC options expiry.
Execution on Deribit
- Trade Execution: The report provides a step-by-step guide on how to execute the Bull Put Spread strategy on Deribit, a popular cryptocurrency futures and options exchange.
Actionable Insights
- Consider Bull Put Spread Strategy: Traders who believe that Bitcoin can pause at current levels might consider implementing the Bull Put Spread strategy. This involves selling a higher strike Put option and buying a lower strike Put option.
- Monitor Market Volatility: With the high implied volatility observed in the $60,000 strike for the 28 June BTC options expiry, traders should keep a close eye on market movements and adjust their strategies accordingly.
- Utilize Deribit for Trade Execution: Traders can use the Deribit platform to execute the Bull Put Spread strategy. The report provides a step-by-step guide on how to do this.
