Ultrasound Ethereum: Buy ETH Calendar Risk Reversal September 10
Following the release of the EIP 1559 update, Ethereum issuance has become more deflationary than Bitcoin. About 138 000 ETH have already been burned, with a current market value of more than $440 million. We expect price pressure to continue. More than that, we expect an acceleration in price growth after the first decade of September as part of the seasonal liquidity increase.
Flash Idea:
In order to reduce the amount of risk, we choose the nearest execution date of September 10. We then sell 2 PUT options with a 2 900 strike price (the estimated premium to be earned is about $6.5 for a minimum transaction size of 0.1ETH) and with the financing obtained we buy PUT with a later execution date - 24 September, and with 3 800 strike price (estimated premium is $9 for each). The later date for the CALL option is chosen so that there is enough time for the price to move in the expected direction. Conversely, the earlier date for PUT options is chosen to reduce risk.
Risks: Since the idea is to sell two PUT options at 2 900, once Ethereum crosses 2 835 there is a chance of loss.
Flash Idea:
In order to reduce the amount of risk, we choose the nearest execution date of September 10. We then sell 2 PUT options with a 2 900 strike price (the estimated premium to be earned is about $6.5 for a minimum transaction size of 0.1ETH) and with the financing obtained we buy PUT with a later execution date - 24 September, and with 3 800 strike price (estimated premium is $9 for each). The later date for the CALL option is chosen so that there is enough time for the price to move in the expected direction. Conversely, the earlier date for PUT options is chosen to reduce risk.
Risks: Since the idea is to sell two PUT options at 2 900, once Ethereum crosses 2 835 there is a chance of loss.