LTC Chart and BTC Call Writing

Not too much happening this morning. We keep our eyes on the LTC chart as we have seen a downward wedge forming over the last week or so. We look for potential breakdown of that $75 near-term support. LTC has rallied from the lows of last December from ~$22 roughly 350%. A short-term retracement would not at all be unlikely NOR would it be a bad sign for the token. Healthy pullbacks can and should occur in an asset that rallies this hard, this fast.

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Regarding BTC, we have been stuck between $4,700 — $5,300 since the April 1st rally, and the range is contracting. As we mentioned in our BTC Options Skew piece on April 3rd, call skew has caught a bid. Traders/investors who are long BTC are looking to sell upside and/or hedging their inventories, with the potential strategy of writing covered calls. This morning we worked these options for one of our clients with that mindset:

BTC Z (12/27/19) 5,500 Call 890/1125
BTC Z (12/27/19) 6,000 Call 725/950
BTC Z (12/27/19) 8,000 Call 400/600
BTC Z (12/27/19) 10,000 Call 290/425
BTC Ref $5,200

If you have similar thoughts that BTC may be stuck, or trade sideways, over the next few months, this strategy could be right for you. Please reach out with any questions or quote requests.

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