View on market
The 4-hour BTC chart indicates a possible retracement to the $64,000 demand zone after breaking the $67,000 supply zone with a flag and pole pattern. Despite this, the trend remains upward, supported by a bullish crypto market atmosphere.
Bull Put Spread
The proposed strategy is a Bull Put Spread and it consists of one short Put with a higher strike price and one long Put with a lower strike price. Both Puts have the same underlying and the same expiration date.
You may take this trade if you believe BTC will bounce back from the demand zone at $64,000 level.
Trade Structure
(OTM Put) Sell 1x BTC-09AUG24-$64,000-P @ $2,186
(OTM Put) Buy 1x BTC-09AUG24-$63,000-P @ $1,789
Target: Spot level > $64,000
Payouts
Maximum Profit: $397/BTC
Why are we taking this trade?
In the attached 4-hour BTC price chart, Bitcoin shows signs of retracement to the zone responsible for the breakout from the supply zone(at $67,000), which was taken out on July 21st. This supply zone was broken after the formation of a flag and pole pattern, highlighted in the price chart with yellow lines. The price may attempt to retrace to the demand zone at $64,000.
Despite this potential retracement, the trend remains upward. The overall crypto market atmosphere is bullish, suggesting that the trend may continue.
To implement this strategy, traders can sell a higher strike Put option (e.g., $64,000) and simultaneously buy a Put of a lower strike price (e.g., $63,000).
If Bitcoin is at or above $64,000 when the options expire on August 9th, traders will be at maximum profit from the strategy.
In case of market downturn, the maximum loss is limited to $603, Maximum loss of Bull Put Spread = Difference between strike prices of puts ($64,000 – $63,000) – Net Credit ($397).
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.
