BTCUSD bear call strategy
Updated
The 
bitcoin price broke recently the $750 resistance... but not for long.
Observing the price action, a potential short oportunity would be to wait for a lower top (lower than $753) to be formed.
Then one can start selling calls or call spreads at the $760 or $780 strike price.
Last time I checked at deribit.com (an options and futures exchange) the bids were $16.30 and $10.30 respectively for these options.
So the breakeven prices would be respectively $776.30 and $790.30 for a short call strategy.
NOTE:
I am just starting to trade some bitcoin options.
Seems to be a relatively new market, with not much liquidity; but one can still take good advantage of such oportunities.
Trade with care, always observe the risks and don't oversize your positions.
NOTE2:
Anyone would be so kind to act as a marker maker for bitcoin options?
That would be really awesome. =)
If I had more knowledge/experience (and money) I would certanly do it.
bitcoin price broke recently the $750 resistance... but not for long.Observing the price action, a potential short oportunity would be to wait for a lower top (lower than $753) to be formed.
Then one can start selling calls or call spreads at the $760 or $780 strike price.
Last time I checked at deribit.com (an options and futures exchange) the bids were $16.30 and $10.30 respectively for these options.
So the breakeven prices would be respectively $776.30 and $790.30 for a short call strategy.
NOTE:
I am just starting to trade some bitcoin options.
Seems to be a relatively new market, with not much liquidity; but one can still take good advantage of such oportunities.
Trade with care, always observe the risks and don't oversize your positions.
NOTE2:
Anyone would be so kind to act as a marker maker for bitcoin options?
That would be really awesome. =)
If I had more knowledge/experience (and money) I would certanly do it.
Note
The call options that I mentioned expire on November, 25 (exactly 1 week from now).The time decay would be fast and would be working greatly in our favour.
Note
Sorry guys, I used the Bitstamp graph, seems like Coinbase has better liquidity.In the Coinbase graph the price barely broke out the $750 resistance.
Better yet for our strategy.
But we must still wait for a new clear top to be confirmed (lower than $751).
Note
Seems like a new top candidate. Observe the descending triangle.Note
The triagle was broken upwards... waiting for a new top candidate.Note
Apparently the breakout was a massive bull trap. Back to the triangle... Still waiting for a 1h-candle closing or at least a 30-min closing confirming this top candidate.
Note
Note
I am considering selling also some December 30 call options, because their premium is very attractive ($50 and $41 for the 760 and 780 strikes). The bitcoin price could go up to $800 and we still would be positive.
Trade active
Already sold some December 30 calls.I pretend to hold until close to expiry, let time decay so it's job.
Looking good so far!
Trade closed manually
This week, before the Bitcoin made a small rally to 780, I bought back the calls I sold previously. I still made a nice profit!
I hope you guys could also take advantage of this opportunity.
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