stefan1234
Short

BTCUSD bear call strategy

BITSTAMP:BTCUSD   Bitcoin / Dollar
2 months ago
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.

2 months ago
Comment: 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.
2 months ago
Comment: 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).

snapshot
2 months ago
Comment: Seems like a new top candidate. Observe the descending triangle.
snapshot
2 months ago
Comment: The triagle was broken upwards... waiting for a new top candidate.
2 months ago
Comment: 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.
2 months ago
Comment:
snapshot
2 months ago
Comment: 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.
2 months ago
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!
2 months ago
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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