
Trade 5. 100k Directional Target
Justin Chuk
6/2/20241 min read
Trade 5: $100k target directional
With strong ETF inflows, the halving effect, and the buzz around Ethereum ETFs, the possibility seems promising. This is a directional strategy based on the upward momentum.
Strategy Overview:
• Buy a 2-Month One-Touch Option: Invest in a one-touch option that pays out if BTC price 'touches' 100k USD at any point within the next 2 months.
• Simultaneously Sell a 1-Month One-Touch Option: Cheapen the cost by selling a one-touch option with the same 100k USD strike price, but for the first month only. This bet is on the assumption that BTC won't hit 100k USD in the initial month.
Cost and Leverage: (Spot reference 66k USD)
• The combined cost for the package is 10% of the potential payout, i.e. it costs 10k USD to stand a chance to make 100k if the conditions are met.
• This setup offers attractive leverage, with a potential gain of 10 times your initial investment.
Payout Scenarios (assuming 10k USD investment):
• Day 1: Initial upfront payment of 10k USD premium.
• Scenario 1: Bitcoin never touches 100k USD in the first month but reaches it in the second month. You receive a 100k USD payout.
• Scenario 2: Bitcoin touches 100k USD in the first month. In this case, the payout is zero.
• Scenario 3: Bitcoin fails to reach 100k USD within the two-month period. In the case, the payout is also zero.