Bitcoin remains in a tight range, consolidating around $102,500, with support at $100,000 and resistance near $105,000. The market seems to have entered a pause following recent bullish moves. Volume remains low, indicating a lack of significant momentum, while indicators such as the RSI are in neutral territory, reflecting a balanced market. Additionally, the NUPL (Net Unrealized Profit/Loss) at 58.17% confirms that the majority of holders remain in profit, reinforcing price stability.
However, all eyes are on what Donald Trump will do next. While the president has reassured markets by announcing that tariffs on Canada, Mexico, and China will not come into effect, everything remains possible with him. One unexpected announcement could break the current range within minutes, so traders must be prepared for sudden volatility.
Implied volatility (IV) remains elevated, hovering around 56%-57%, while the skew in put options remains inflated, showing strong demand for downside protection. These conditions offer interesting opportunities for strategies that leverage high premiums and range-bound markets.
BTC VOl Structure “No Comment” Trump Volatility
Recommended Strategies Ideas
Bull Put Spread (Expiration: February 7, 2025)
This strategy captures inflated premiums from puts while limiting risk in the short term.
Iron Condor (Expiration: February 28, 2025)
Combines upper and lower legs to generate income in a wide range-bound market.
Conclusions
Both strategies offer valuable opportunities to trade Bitcoin’s volatility effectively. The Bull Put Spread is a short-term strategy ideal for scenarios where BTC remains stable or moves slightly higher, capturing premiums from elevated skew while limiting risk. Meanwhile, the Iron Condor is better suited for traders who expect BTC to stay within a wide range, offering a balance between risk and reward over a longer timeframe. In both cases, it is crucial to remember that the optimal approach is to exit positions early, ideally when capturing 25%-30% of the maximum profit, as holding until expiration increases risks unnecessarily. By focusing on volatility rather than pure direction, these strategies allow traders to take advantage of current market conditions while maintaining disciplined risk management.
Disclaimer: Educational Purposes Only
The strategies presented in this report are for educational purposes only and should not be considered as financial advice or trading recommendations. Always evaluate your risk tolerance and consult with a financial professional before engaging in trading activities.
Disclaimer: This article is for educational purposes only and does not constitute financial advice.
About Author
SpreadGreg is a distinguished Principal Trader and CEO at GP Asset Management LLC in Chicago, with over 11 years of professional trading experience and specialized in financial options and commodity futures strategies, he combines technical skill with strategic insight.
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