#MyFirstSquarePost New to Binance Square, thrilled to share and connect with everyone here!
Options Market Update 10/25
Volumes and sentiment have picked up materially in October while the US election looms on the horizon. Trump is gaining momentum in the polls (or is it just polymarket) and BTC sits on huge levels.
TRADE IDEA
Buy BTC and Sell a 27-Dec 90k Call / 55k Put for Zero Premium (Collar, spot ref 68000)
Payoff is asymmetric at nearly 2:1 with 22k of upside and 13k of downside
Implied rates have blown out higher pushing futures up and giving this better entry
Skew for Calls is bid (4 vols over Puts) on a perceived victory by Trump
Best of all: zero premium for the hedge and zero exposure below 55k
TRADE IDEA
Buy a 15-Nov 60k BTC Digital Put for 23.0% (spot ref 68000)
Nice hedge for anything but a Trump victory over the election
Vols are low and protection is cheap for the uncertainty
Trade pays out nearly 4.5x with spot under 60k
