Bullish Market Outlook: Crafting a Winning Call Spread Strategy
Anand Raj
Trade Strategy: Call Spread
View: Moderately Bullish View on BTC
Buy 1x BTC-15MAR24-73500-C @ $1120
Sell 1x BTC-15MAR24-74500-C @ $800
Target: Spot level > $74,500
Payoff chart at Expiry
Max Profit: $680/BTC
Debit of Strategy: $320/BTC
Why are we taking this trade?
BTC has displayed no significant indications of retracement or breaches of support or demand zones, maintaining its proximity to all-time highs. With expectations of continued upward momentum, I predict BTC will climb to unprecedented levels in the near future, potentially surpassing $75,000.
To capitalize on this potential surge, the call spread strategy emerges as an attractive option.
Should there be a price downturn, losses are confined to the initial debit of $320. It’s worth noting substantial open interest exists at both $76,000 and $80,000, indicating these thresholds might act as resistance points, thereby potentially optimizing profits beyond $74,500.
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.
