Research Summary
The report discusses the bullish sentiment in the crypto market following the approval of the Spot Ether ETF. It suggests a Bull Put Spread strategy for traders who believe Bitcoin will continue its upward momentum. 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
Bullish Sentiment in Crypto Market
- Approval of Spot Ether ETF: The report highlights the recent approval of the Spot Ether ETF, which has created a bullish sentiment in the crypto market. This approval was anticipated based on five key indicators.
- Spot Bitcoin ETFs Inflows: The bullish sentiment is further supported by the fact that Spot Bitcoin ETFs have seen net inflows for nine consecutive days, with net inflows of $107.9 million recorded on a single day.
Bull Put Spread Strategy
- Strategy Explanation: The Bull Put Spread strategy involves selling a higher strike put option and buying a lower strike put option. This strategy is suggested for traders who believe Bitcoin will continue its upward momentum.
- Maximum Profit and Loss: The maximum profit from this strategy is $261 per Bitcoin. The maximum loss is limited to $739, calculated as the difference between the strike prices of the puts minus the net credit.
Execution on Deribit
- Step-by-step Guide: The report provides a step-by-step guide on how to execute the Bull Put Spread strategy on Deribit. This involves creating a combo, sending the order to the Combo List, and executing the strategy.
Actionable Insights
- Consider the Bull Put Spread Strategy: Traders who believe in Bitcoin’s upward momentum might consider implementing the Bull Put Spread strategy. This involves selling a higher strike put option and buying a lower strike put option.
- Monitor the Crypto Market: With the recent approval of the Spot Ether ETF and the bullish sentiment in the crypto market, it’s crucial to keep a close eye on market trends and developments.
- Understand the Risks: While the Bull Put Spread strategy can yield a maximum profit of $261 per Bitcoin, it’s important to understand that the maximum loss is limited to $739. Traders should be aware of this risk before implementing the strategy.
