🔥 My Volatility Trade Setup Before CPI Data! 🔥
Hey traders! With CPI data around the corner, I’m setting up a volatility trade. Here’s my plan:
💰 Feb 15: 2450 Call (14.5$) + 2800 Put (14.5$)
Total cost: 29$.
📅 Why February 15?
This week, including Friday, is packed with major news. CPI might spark volatility, but if the expected move doesn’t hit, other news or delayed market reactions could still bring action later.
💡 Why these contracts?
My goal is to profit from contract value. Since the expiry is farther out, contracts are pricier. I picked strikes far from the spot price but close to potential volatility. If volume stays low, I won’t wait for exercise—contract value is key.
⚖️ Why options over leverage?
Price could spike up then crash; I don’t want to get stopped out by a wick. With options, my max risk is 29$, but upside is limitless.
🚨 What’s the risk?
The biggest risk is flat price action, causing my contracts to lose value over time. But my loss is capped at 29$, while gains depend on how far the price moves or how much the contracts appreciate.
I hope I have shown you why I prefer options and what perspective it has.
What’s your take on CPI and the next market move? Drop your thoughts below! 💬
#CPIvsCrypto #BTCStateReserves #BTCvsInflation #BinanceAlphaAlert #ETH
