For traders who are unsure about Bitcoin (BTC) trading, the Long Condor Call or Iron Condor options strategy provides the best results with very low risk. This strategy offers protection up to $ 53,500, down 7% from the current $ 57,600 and yields a positive result of $ 67,500.

Options markets provide a lot of flexibility for tailor-made strategies. Unlike futures contracts, there are two separate instruments available. A put option gives the buyer protection against a rise in price, while a put option offers the opposite.

Bitcoin options strategy provides profit. Source: Deribit Position Builder
This long condor strategy is set for an expiration date of December 31st and uses a slightly upward range. The same basic structure can also be used for other periods or price ranges, although contract quantities may need some adjustment.

Bitcoin was trading at $ 57,600 when pricing occurred, but a similar result can be achieved at all price levels. The minimum contract size depends on the derivatives exchange, but the proposed ratio must be maintained to maintain the overall structure of the strategy.

The first trade requires you to buy 0.54 contracts of $ 52,000 Calls to create positive exposure above this price level. Then, to limit profits above $ 56,000, the trader must sell 0.50 BTC call options.

To further limit profits in excess of $ 64,000, an additional 0.45 of the call contract must be sold. To execute the strategy, a trader needs to protect a vertical worth over $ 70,000 by buying 0.41 put options if the price of bitcoin rises.

Related Topics: 3 Reasons Bitcoin Dropped To $ 56.5k, Which May Be A Local Bottom

The risk / reward ratio of 1.50 to 1 is moderately bullish.
The strategy may seem daunting to implement, but the required margin is only 0.0152 BTC, which is also the maximum loss. Traders should remember that it is also possible to close a position before the expiration date of December 31st if there is sufficient liquidity.

The maximum net profit is between $ 56,000 and $ 64,000 at 0.0233 BTC, which is 50% more than the potential loss. Since the expiration date is 30 days later, this strategy gives the holder security as, unlike futures trading, there is no risk of liquidation.

Also, it seems conservative to have a range of returns ranging from bearish 7% to positive price change of 17%, spanning a decent price range of $ 14,000.

Source: CoinTelegraph

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