Hopeful Ethereum preferences trade marks $3.1K Ether price with no liquidation threat.

February 6, 2022

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For the last two months, the Ether price was stuck and the possibility of profit in the coming months are hazy. The expectations of the favourable trader to gain $4,870 seems like an impractical belief but using a “long condor with call option” appears to be an encouraging upshot. The two readily accessible instruments are call option and protective put. The call option furnishes upside price protection whereas the protective put does the contrary. Traders can also choose to sell the financial securities to develop an unfavourable exposure, just like futures bonds.

The long condor technique mirrors a hopeful measure. Initially, Ether(ETH) was going at $2,677, but an identical outcome can be accomplished from any rate phase. The initial exchange needs the purchase of 5.14 ETH cost of $3,000 name options to build a beneficial exposure. On the other hand, to restrict gains, the trader needs to sell 4.4 ETH contracts of the $3,500 name. To finish the strategy, the traders need to promote 6.65 ETH contracts of the $4000 name, putting a restriction above the cost status.

The margin expected is around 0.175 ETH, which is a huge loss too. The reasonable net gain appears if ETH sales are between $3,100 (up 15%) and $4,370 (up 63%) Traders need to keep in mind the expiry date of locking the position which is March 25. The utmost gain emerges between $3,500 and $4,000 at 0.56 ETH, which is 3 times bigger than the probable loss. No liquidation risk provides the trader with a calm mindset. The traders are free to use the same technique using a small proportion.



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