Article by

Sue Ann Sim
Sue Ann Sim

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Market Insights

Asia & London Colour

Published April 19, 2024
1 mins read

Article by Sue Ann Sim

  • BTC broke below 60k again in Asia morning following headlines about an Israeli attack on Iran. (BTC low of 59.5k and ETH low of 2865).
  • However, once again, BTC bounced hard off this level and is trading back above 64k (ETH well above 3k).
  • Today is the eve of the BTC halving and the market appears to have formed a clearly defined baseline support level around the recent lows.
  • As a result, we have seen a flurry of options activity around the year-end expiry as investors begin to position for a post-halving resumption of the uptrend and a breakout from this two month long consolidation.
  • What level will BTC settle on at the end of a watershed year?

Trade Ideas:
The following are some potential strategies catered for a defined year-end view on BTC. (spot ref: 64,500)

1. ERKO (100/200k)
Max payout: 20.4X
Price: 4900 USD per BTC
Strike: 100k
KO: 200k
Expiry: 27-Dec 2024
This strategy will earn a return if BTC spot expires above 100k level at year end.
At expiry, if BTC spot trades right below the 200k level, it will earn $100k per BTC notional or 20.4X of the premium paid.
Anything in between 100k and 200k is a pro-rated return.
If BTC spot expires at-or-above 200k, the payout is zero.

2. DIGI (200k)
Payout: 20X
Strike: 200k
Expiry: 27-Dec 2024
At expiry, if BTC spot trades at-or-above 200k, the payout is 20X of the premiums paid.
If BTC spot expires below 200k, the payout is zero.

*These strategies can be structured as zero-downside notes on a USD deployment as well for a more conservative strategy.
Clients may check on your trade chat directly for details.

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