Today is May 19th. Last night, Bitcoin fluctuated a bit, which was exciting. Will we be able to charge towards 110K this week? Let's look forward to it together. Mainly, let's discuss the analysis of Sol for this week. Recently, it has been fluctuating around 170, seemingly becoming a little transparent. However, once Bitcoin strengthens, Sol is bound to burst with strong momentum, so it might be wise to position in advance.
I have mentioned the macro analysis several times already, and I have multiple reasons to be optimistic about a new high by the end of the year; I believe everyone has faith in that. So, what are the short-term highs and resistance levels for Sol?
From the gamma ex perspective, 200 will be a concentrated area of positive gamma resistance. Therefore, it might be a good idea to go long at the negative gamma concentration price points and short at the positive gamma price points to capture the maximum potential gain.
The call ratio strategy of 1:2 is quite recommended. Its time value is almost zero, and time is friendly to the position; even if there is a misjudgment, the loss is almost zero. It is particularly suitable for trading high volatility assets like Sol.
Currently, Sol's implied volatility is within a normal range, and the upcoming period of calm is expected to be quite long, so I recommend positioning for June's expiration. There will be speculation based on interest rate cuts and economic data every month, leading to noticeable price fluctuations. May has basically no room for speculation, making the possibility of positioning for June higher.
Of course, this combination will incur losses if it surges beyond 200. If the upward momentum is too strong, you can temporarily buy out-of-the-money calls, which can be transformed into an iron condor strategy to limit maximum losses.
Generally speaking, as long as it does not surge beyond 200, there will be significant positive returns in the two weeks before the options expire. Overall, this strategy still has a relatively high cost-performance ratio.