BTC Bullish Insights: Call Butterfly amid CPI & OI Surge

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.