Risk reversal: buy the deep

May 19, 2021 will go down in crypto market history as the day of shock, pain and the biggest fall.

After BTC collapsed 35% in just 2 hours, breaking through a strong resistance level of 40,000 and testing the 30,000 level, the rest of the crypto market followed suit. A 50% slump from the peak value is the usual market norm for most altcoins today. However, this situation of mass liquidations in addition to the stress and pressure allows you to enter the market at much more interesting prices.

The options market provides an opportunity to participate in price movements with far less capital requirement. For optimal entry, you can use Risk Reversal, when selling PUT option allows you to buy CALL option.

For BTC, by the way, it is possible to take a long position of double the amount:

  1. SELL PUT option with an execution date of June 25, an execution price of 28,000 and a premium of 2,800.
  2. BUY two CALL options with an execution price of 25 June, an execution price of 50,000, and a premium of 1,400*2=2,800.

For ETH, the relevant levels at the moment would be:

  1. SELL PUT option with an execution date of June 25, an execution price of 2,080 and a premium of 320
  2. BUY CALL option with execution date of June 25, execution price of 3 200 and premium 314.

Thus we have the possibility to participate in the price growth without investing our own money.

The third asset that can be considered for the application of this option trading scheme is BNB.

The levels of transactions are as follows:

  1. SELL PUT options with an execution date of June 25, execution price of 300 at a premium of 45
  2. BUY CALL option with the same execution date, execution price 420 and premium 44

The current situation offers unique opportunities for profitability. However, it also carries significant risks. In general, the use of options allows trading with much greater control over volatility and liquidity and far less risk.

If you have any questions — reach out to us via:

Telegramm — @DeltaTheta_Research

email — Research@deltahteta.tech

The information published on the website, including the results of research, forecasts, estimates regarding financial instruments, on the nature, characteristics of a financial instrument (combination of financial instruments), changes in its (their) value, the results of technical and/or fundamental analysis is not an individual investment recommendation, and financial instruments or transactions mentioned in it may not match your investment profile and investment goals (expectations). It is your task to determine if a financial instrument or transaction meets your interests, investment objectives, investment horizon and risk tolerance level.

DeltaTheta Inc. disclaims any liability for potential losses in case of executing transactions or investing in financial instruments referred to in the information and does not recommend the use of this information as the only source of information when making an investment decision. The information may not be regarded as guarantees or promises of future returns on investments, risk levels, costs, break-even investments. The outcome of past investments does not determine future returns.

Analyses, reviews, news articles of DeltaTheta Inc are internal documents of the company, as well as for the purpose of informing clients. They are not advertisements for securities. Information is based on public sources deemed reliable, but DeltaTheta Inc is not responsible for its accuracy. Investing in securities involves significant risk and decisions about investments should be made by the investor.

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P2P options trading platform on Binance Smart Chain, Ethereum

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delta.theta

delta.theta

P2P options trading platform on Binance Smart Chain, Ethereum

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