Bitcoin Bear Plunge: Profiting with the BTC Put Plunge Strategy
Sideways View on BTCUSDT
Trade:
Buy 36800 Put option of 22 November expiry @ $150
Sell 36400 Put option of 22 November expiry @ $75
Sell (2x) 36000 Put option of 22 November expiry @ $35 each
Stop Loss: Spot level = $38400
Target: Spot level of $36400
Payoff at Expiry:
Max Profit: $395/BTC
Rationale:
Following an impressive surge in BTC, we observed a retracement from the 38000 levels, leading to a dip in BTC’s value to 34900. This selling pressure successfully breached key demand/support zones, particularly around 35600, and price is back at resistance level again.
Above setup is a bear put spread / put debit spread which allows you to profit from a potential downward movement while limiting your risk.
Trade:
Buy 36800 Put option of 22 November expiry @ $150
Sell 36400 Put option of 22 November expiry @ $75
Sell (2x) 36000 Put option of 22 November expiry @ $35 each
Stop Loss: Spot level = $38400
Target: Spot level of $36400
Payoff at Expiry:
Max Profit: $395/BTC
Rationale:
Following an impressive surge in BTC, we observed a retracement from the 38000 levels, leading to a dip in BTC’s value to 34900. This selling pressure successfully breached key demand/support zones, particularly around 35600, and price is back at resistance level again.
Above setup is a bear put spread / put debit spread which allows you to profit from a potential downward movement while limiting your risk.