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.
Komen
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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.
Komen
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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).
Komen
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Seems like a new top candidate. Observe the descending triangle.
Komen
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The triagle was broken upwards... waiting for a new top candidate.
Komen
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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.
Komen
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Komen
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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.
Dagangan aktif
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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!
Dagangan ditutup secara manual
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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.