Weekly Trade Recommendations for Tuesday 28 January, 2025

Weekly Bitcoin Options Strategy: Low-Risk Play for January 31, 2025

In light of the current market conditions and data insights, we recommend implementing a Bull Put Spread strategy for the Bitcoin options expiring on Friday, January 31, 2025. This strategy is designed to capitalize on the underlying bullish sentiment indicated by the negative 25-delta monthly options skew, suggesting that calls are relatively more expensive than puts, a sign of bullish market expectations. Additionally, the positive momentum in address activity and the bullish implication of the ETF pressure data further support this sentiment.

### Market Insights
- 25-Delta Monthly Options Skew: The current skew is -0.04, a change of 13.28% over the past week, which indicates a bullish outlook as this suggests that market participants are willing to pay a premium for calls over puts.
- Address Activity: An increase of 8.31% over the last 30 days suggests growing interest and engagement in the BTC network, often a precursor to price increases.
- ETF Pressure: A negative value suggests high demand from Bitcoin ETFs, outstripping the supply of newly minted coins, reinforcing a bullish narrative.

### Strategy: Bull Put Spread
The Bull Put Spread involves selling a put option while simultaneously buying another put option with a lower strike price. This setup allows traders to collect a premium and limit potential losses, making it a low-risk, high-efficiency strategy.

Why Choose Bull Put Spread?
- Risk Management: The purchase of the lower strike put acts as a safety net, capping potential losses if the market moves against the expected trend.
- Profit Potential: If Bitcoin's price remains above the higher strike price at expiration, the entire premium collected from the spread is the trader's profit.
- Market Alignment: The strategy aligns with the current bullish sentiment, capitalizing on market optimism without exposing traders to unlimited downside risk.

### Summary of the Play
- Strategy: Bull Put Spread
- Expiry Date: January 31, 2025
- Strike Prices: 102000, 101000

This approach provides a balanced mix of risk and potential reward, leveraging current market conditions to increase your BTC stash efficiently.