Research Summary
The report discusses the bullish momentum of Bitcoin, driven by strong ETF flows and significant institutional investments. It proposes a Call Butterfly Strategy for traders expecting an upward movement in Bitcoin prices. The strategy involves buying and selling call options at different strike prices. The report also provides a step-by-step guide on how to execute this strategy on Deribit.
Key Takeaways
Bitcoin’s Bullish Momentum
- Positive Market Outlook: The report predicts a continued bullish trend for Bitcoin, supported by strong ETF flows and significant institutional investments. The price of Bitcoin has rebounded to $67,500, with a strong support level established at $65,500.
Call Butterfly Strategy
- Trading Approach: The report suggests a Call Butterfly Strategy for traders expecting an upward movement in Bitcoin prices. This involves buying a call at a lower strike price, selling two calls at a higher strike price, and buying another call at an even higher strike price.
Trade Structure
- Specifics: The report provides a specific trade structure for executing the Call Butterfly Strategy. This includes buying a call at $70,000, selling two calls at $72,000, and buying a call at $74,000. The target spot level is less than $72,000.
Potential Payouts
- Profit and Loss: The maximum profit from this strategy is $1905 per Bitcoin, while the potential loss is limited to the initial debit of $95 per Bitcoin.
Execution on Deribit
- Step-by-Step Guide: The report provides a step-by-step guide on how to execute the Call Butterfly Strategy on Deribit, a cryptocurrency futures and options exchange.
Actionable Insights
- Monitor Bitcoin’s Market Trends: Keep an eye on the bullish momentum of Bitcoin, driven by strong ETF flows and significant institutional investments. This could provide insights into potential trading opportunities.
- Consider the Call Butterfly Strategy: If you’re expecting an upward movement in Bitcoin prices, consider the Call Butterfly Strategy as a potential trading approach. This involves buying and selling call options at different strike prices.
- Understand the Trade Structure: Familiarize yourself with the specific trade structure provided in the report for executing the Call Butterfly Strategy. This includes buying a call at $70,000, selling two calls at $72,000, and buying a call at $74,000.
- Assess Potential Payouts: Evaluate the potential payouts from this strategy, which include a maximum profit of $1905 per Bitcoin and a potential loss limited to the initial debit of $95 per Bitcoin.
- Learn to Execute on Deribit: Learn how to execute the Call Butterfly Strategy on Deribit, a cryptocurrency futures and options exchange, by following the step-by-step guide provided in the report.
