June 21, 2021

Bullish traders cast low-risk Ethereum options bets with this clever strategy

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Ether (ETH) has been making higher lows throughout 2021, and the current trend indicates that $1,800 might be the bottom for April. Even traders and investors who do not rely on technicals have become optimists after Visa initiated a pilot to settle transactions in USD Coin (USDC) through the Ethereum network.

Ether price in USD at Coinbase. Source: TradingView

Given that Ether’s price is looking like it’s ready to pursue new yearly highs, there’s a few investment options on the table. Buying and holding is an excellent strategy, as well as a leveraged long position up to 2x. The problem lies on the downside, as a 20% move would result in a 40% loss using futures contracts. Not to mention there is not much room for additional leverage as it requires a considerable upfront.

On the other hand, options strategies provide excellent opportunities for traders who have a fixed-range target. For example, for those expecting a moderate 15% price increase in thirty days, the ‘Iron Condor’ strategy provides 12% gains with minimal upfront funds required. This strategy also limitsTitle: Bullish traders cast low-risk Ethereum options bets with this clever strategy
Sourced From: cointelegraph.com/news/bullish-traders-cast-low-risk-ethereum-options-bets-with-this-clever-strategy
Published Date: Tue, 30 Mar 2021 19:30:45 +0100

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