Trade 1. Bitcoin Bounce-Back: Exploring 3-Month Binary Options

Trade 1. Bitcoin has retraced from its all-time high of 73k reached in March. The question on everyone's mind now: What are the odds of BTC revisiting and surpassing this ATH in the next 3 months?

The option market is currently pricing a 17.5% probability of BTC reclaiming the 73k in 3 month time. For those confident in this scenario, a binary option offers attractive risk-reward.

1.⁠ ⁠Basic Binary Option:

Notional: 1 million USD

Maturity: 3 months Spot

Reference: 57.5k USD

Strike: 73k USD

Premium: 175k USD

Payoff: If BTC >= 73k USD at maturity, you receive 1 million USD (5.7x return); Else, you receive zero.

If you anticipate BTC will reach a new high but not go too far, you can further cheapen the cost of this trade by adding a knock-out barrier at 90k.

2.⁠ ⁠Binary Option with Knock-Out Barrier:

Notional: 1 million USD

Maturity: 3 months

Spot Reference: 57.5k USD

Strike: 73k USD

Knock-Out Barrier: 90k USD

Premium: 100k USD

Payoff: If BTC >= 73k USD at maturity AND it never breaches 90k USD at any point, you receive 1 million USD (10x return); Else, you receive zero.