Trade 7: BTC Accumulator and Bullish Range Option

Trade 7: BTC Accumulator and Bullish Range Option

The recent market retracement following the Non-Farm Payroll report on Friday presents a potential opportunity to enter long positions on Bitcoin for those who anticipate a new high in the near future. two structured products to consider:

1.⁠ ⁠Accumulator

Duration: 10 weeks

Buy BTC every week at 62,500 USD

Knock-Out on any day if spot > 75,000 USD

I like accumulators as they offer an attractive discount in a low volume / mild appreciation market.

2.⁠ ⁠Bullish Range Option

Expiry: 2 month

Price Range: [75,000 USD, 85,000 USD]

Payoff: 1,000,000 USD

Cost: 200,000 USD

This structure expresses a simple view with a simple payoff. In 2 months time, if BTC's price is above 75,000 USD but below 85,000 USD you receive 1,000,000 USD. If BTC's price is outside this range, you receive zero. The cost for this bet is 200,000 USD. The potential return is 500%.

Above structures would then be priced off a spot ref of 69,500 USD.