#期权 Hello everyone, welcome to today's cryptocurrency market analysis. Today we will focus on the market dynamics of Bitcoin and introduce trading plans and strategies suitable for June. #币安

From the recent price trend of Bitcoin, we find that Bitcoin may be forming a top. However, there is no obvious sign of a decline in the market. Instead, we see a contracting triangle, which may indicate that there will be larger price fluctuations in the future. 31,000 has not been broken in May, and the bottom of 25,500 since March has also formed a strong support. The M top has not been formed directly, so when the current contraction trend is formed, whether it is upward or downward, I think a larger fluctuation is coming.

On the other hand, Hong Kong’s recent cryptocurrency-friendly policy may also become a key factor affecting Bitcoin prices. Although the market’s reaction to this policy is not yet obvious, I expect that in June, this policy may have a substantial impact on the market.

In such a market environment, we need a strategy that can cope with large price fluctuations.

Whether it is long or short, the contract strategy cannot be sure of the direction at present, and it is best to wait for the trend to emerge before entering the market. Therefore, we need a strategy for volatility.

This is the straddle option combination. In the previous video, we introduced that we buy both the call and put options at the current price at the same time. The advantage of this strategy is that as long as the price fluctuates significantly within the predetermined period, whether it is upward or downward, we are likely to gain profits. This greatly reduces our investment risk.

For those who don't understand, let me explain it again: options and contracts are different. For contracts, if the price fluctuates, if the two positions are the same, it is almost useless because the profit and loss will offset each other. However, options are different. If the price fluctuates greatly, since the option premium is fixed when it is bought, the value of the party with the right direction will increase until it exceeds the premium of one party, and then the premium of both parties. If the price continues to fluctuate, the profit will exceed the premium of the two options you purchased. At this time, the option starts to make a profit.

Therefore, you will realize that for contracts and options, contracts can only make profits if you hold positions in one direction and judge the direction correctly. Options are different. As long as the volatility is large enough, you can make profits even if you cannot judge the direction but can predict volatility.

I bought an Ethereum straddle today, which means buying both a call and a put option at the same time.

The specific option orders are: one is a call option, with an exercise date of June 16, a price of 1900, and a price of 50USDT; the other is a put option, with an exercise date also of June 16, and a price of 1900.

The combination of these two is a break-even option combination. As long as the price fluctuates greatly on June 16 and the profit exceeds my cost range, I can get a profit.

At the same time, I chose to be on Binance

The trading platform operates this strategy. I just saw that Binance's options have been updated recently. After experiencing it, although there are still some imperfections, such as it seems that there is no way to sell calls at present, that is, it is impossible to use covered option strategies for arbitrage, but Binance is the world's leading cryptocurrency trading platform, whether it is security or product iteration speed, it is the strongest in the industry. I believe they will quickly improve product functions.

So, whether you expect the price of Bitcoin to rise or you anticipate large fluctuations, straddle options are a strategy worth considering. I hope today's video is helpful to you. If you have any questions or suggestions about my content, please leave a message in the comment area. I will answer your questions in the next episode. Thank you for watching, and see you next time.