Bullish BTC: Riding the Call Ladder Wave

From deribit by Anand Raj

Trade Strategy: Call Ladder

View: Moderately Bullish View on BTC

Target: Spot level > $74,000 & < $78,000

Payoff chart at Expiry

Max Profit: $2000/BTCNet Debit: $0/BTC

Why are we taking this trade?

BTC is currently forming higher lows on its daily chart and has demonstrated resilience since March 6th, recently achieving a new all-time high. Anticipating further upward momentum, I foresee BTC ascending to new peaks in the coming days, possibly reaching $74,000. To leverage this potential move, a 1x1x1 call ladder strategy presents an appealing opportunity.

Notably, there is significant open interest at both $74,000 and $78,000, suggesting these levels could serve as points of resistance, potentially maximizing profits within this range.

It’s important to note that while the initial debit of this strategy is $0, losses are theoretically Notional in the event of a price decline. However, a sudden surge in volatility leading to a substantial upward movement wouldn’t be advantageous due to the position’s net short call exposure.

If the underlying price reaches $76,000 within the next two days, it may be prudent to consider closing the position to secure potential gains.

How to take this trade on Deribit?

Step 1: Go to Combo books under the Strategy tab & create combo (Call Ladder).

Step 2: Click RFQ and send your order to the Combo List.

Step 3: Go to Combo list (BTC), click on your Strategy and execute.