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Bullish traders cast low-risk Ethereum options bets with this clever strategy

Risk-averse traders who believe Ethereum is in a bull trend often use the Iron Condor options strategy to limit their downside risk.
Ether (ETH) has been making higher lows throughout 2021, and the current trend indicates that $1,800 might be the bottom for April. Even traders and investors who do not rely on technicals have become optimists after Visa initiated a pilot to settle transactions in USD Coin (USDC) through the Ethereum network.Ether price in USD at Coinbase. Source: TradingViewGiven that Ether’s price is looking like it’s ready to pursue new yearly highs, there’s a few investment options on the table. Buying and holding is an excellent strategy, as well as a leveraged long position up to 2x. The problem lies on the downside, as a 20% move would result in a 40% loss using futures contracts. Not to mention there is not much room for additional leverage as it requires a considerable upfront.On the other hand, options strategies provide excellent opportunities for traders who have a fixed-range target. For example, for those expecting a moderate 15% price increase in thirty days, the ‘Iron Condor’ strategy provides 12% gains with minimal upfront funds required. This strategy also limits the downside to 10%, regardless of how the asset performs.This bullish strategy consists of buying 10 Ether worth of $1,600 put options while simultaneously selling the same amount of $2,240 calls. To finalize the trade, the buyer will sell 7.5 Ether worth of $2,080 put options and balance it by buying 8 Ether contracts of $2,880 call. Unlike perpetual futures (inverse swaps), options …
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