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Tuesday, September 27, 2022

Ethereum Options Have Targeted A Price Of $3.1K

The price of Ethereum did spend the last couple of months being stuck in a rut- with even the most bullish trader admitting defeat. It was a foregone conclusion that the possibility of trading above $4k would be quite negligible. Of course, most of the cryptocurrency traders are nothing if not notoriously optimistic- hence it is definitely not unusual for them to start expecting another $4,87- high, but this does seem like quite an unrealistic outcome.

Now, despite the current bearish trends in the market, there are still more than a few reasons to be moderately bullish for the next couple of months. It has also been ascertained that the usage of a long condor with call options might just yield a positive result. 

Ethereum Traders Have Been Optimistically Holding To The Prices

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For the market of Ethereum, the options market does provide a lot more flexibility to develop custom strategies- along with the notion that there are a couple of instruments available. On one hand, the call option does provide the buyer with upside price protection, whereas the protective put option does the opposite. Most traders will also be able to sell the derivatives so as to create unlimited negative exposure- which is quite similar to a futures contract. 

This strategy for long condor has been set for expiry on the 25th of March and does use a slightly bullish range. The same structure will also be seemingly applied to most of the bearish expectations, but the scenario usually assumes that most of the traders have been looking for a major upside. As it stands, Ethereum was trading at a price of $2,677 when the pricing took place- but such a similar result can usually be achieved at any price level.

Traders also need to remember that it is highly possible to close the position ahead of the expiry on the 25th of March. In such a strategy, the maximum gain usually occurs between the prices of $3,500 and $4,000 at 0.56 Ethereum.

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