Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

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

Published 03/30/2021, 02:30 PM
Updated 03/30/2021, 04:20 PM
Bullish traders cast low-risk Ethereum options bets with this clever strategy

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 (NYSE:V) 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.

Profit / Loss estimate. Source: Deribit Position Builder

Continue Reading on Coin Telegraph

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.