BTC is looking increasingly binary. There is a lot of energy going either way with this consolidation and BTC looks to be really struggling to find demand to breakout. Google search trends are also showing a signal that interest intensity is declining in the sector.
Buy RIOT Apr/16 $45 calls for $35/contact
If BTC tanks, target $35 ($1000/contact). RR of ~29x so it’s worth a small shot.
If one wants to hedge, they could also buy out of the money calls as well.
Buy RIOT Apr/16 $45 calls for $35/contact
If BTC tanks, target $35 ($1000/contact). RR of ~29x so it’s worth a small shot.
If one wants to hedge, they could also buy out of the money calls as well.
Comment:
Exited some contracts at $2.32 (7.5x return) to cover cost plus modest return.
Kept most of the contracts still as could be a big win and you need to make sure you get some big wins every year. 10-15% of trades make all the return for a year while the rest hopefully wash each other out and are breakeven.
Kept most of the contracts still as could be a big win and you need to make sure you get some big wins every year. 10-15% of trades make all the return for a year while the rest hopefully wash each other out and are breakeven.
Comment:
Exited remaining contracts at $0.92 as approaching market close and market looks quiet.
The US Markets look shakey (NH minus NL) breadth has massive diverged on the run up, and we are finally getting a negative signal in the market. This is also occurring as Bitcoin is attempting to breakout from a larger base, which now looks more prone to fail than not as the market is shifting away from risk-on... and crypto is the ultimate risk-on trade (it does really badly in a risk off environment - opposite of precious metals).
We are now in striking range of $45 and potentially a big win if prices can collapse today or tomorrow. For a $35/contract, this is looking like a great kick at the can. The volatility is high so I recommend having orders to exit contacts staggered as the impulse lower could be quick.