Trade Strategy: Call Butterfly
View: Moderately Bullish View on BTC
- Buy 1x BTC-15MAR24-76000-C @ $800
- Sell 2x BTC-15MAR24-78000-C @ $480
- Buy 1x BTC-15MAR24-80000-C @ $280
Target: Spot level < $78,000
Payoff chart at Expiry
- Max Profit: $1880/BTC
- Debit of Strategy: $120/BTC
Why are we taking this trade?
BTC is currently forming higher lows on its daily chart and has demonstrated resilience since March 6th, recently achieving a new all-time high. Anticipating further upward momentum, I foresee BTC ascending to new peaks in the coming days, possibly reaching $78,000. To leverage this potential move, the call butterfly strategy presents an appealing opportunity.
Notably, there is significant open interest at both $76,000 and $80,000, suggesting these levels could serve as points of resistance, potentially maximizing profits within this range.
In the event of a price drop, losses are limited to the initial debit of $120. If the underlying price reaches $78,000 by tomorrow, it may be prudent to consider closing the position to secure potential gains.
How to take this trade on Deribit?
Step 1: Go to Combo books under the Strategy tab & create combo.
Step 2: Click RFQ and send your order to the Combo List.
Step 3: Go to Combo list (BTC), click on your Strategy and execute.
Disclaimer
This report must not be used as a singular basis of any trading decision. The document includes analysis and views of our research team. The document is purely for information purposes and does not constitute trading recommendation/advice or an offer or solicitation of an offer to buy/sell any contract.
