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 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.
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.
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.
The time decay would be fast and would be working greatly in our favour.
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).
Still waiting for a 1h-candle closing or at least a 30-min closing confirming this top candidate.
The bitcoin price could go up to $800 and we still would be positive.
I pretend to hold until close to expiry, let time decay so it's job.
Looking good so far!
I still made a nice profit!
I hope you guys could also take advantage of this opportunity.