With risk assets remaining under pressure from higher US rates particularly in tech, crypto has struggled to stage any meaningful recovery after bouncing off just under 40k last week. Still see the potential for a final push lower to eek out a new local low on divergent momentum which may provide a signal for a more material rally. For now we wait for this down move to complete.
ETH has been tracking what BTC is doing and the ETH/BTC spread is stable above recent support around 0.074. Would look for this support to hold in the last push lower so that ETH can bounce strongly out of the crypto weakness.
We saw opportunistic buyers of Jan BTC calls but were quickly sold back out as the breakout didn’t happen and gamma sellers were coming! You can that from the open interest change being smaller than the trading volumes in those Jan calls. Interesting vol trade was to sell Feb 40k/50k strangle to buy 3 times the March 30k/70k strangles. Finally, the June22 40k/60k call spread went up in decent size as a buyer.
Filmed on on Tuesday 18th January 2022.
Want to listen to our full discussion? Sign up for a 14 day free trial with Options Insight today for access to our Members Dashboard where you’ll find a recording of the full call as well as my market report and top trades:
Our trading call takes place at 1:30pm (BST) over Zoom to participants around the world with a copy of the recording post event for you to view at your leisure.
WHAT IS MACRO INSIGHT?
Macro Insight is an exclusive, members only community, hosted by veteran trader, Imran Lakha. When you join you will receive access to his weekly trading call, benefit from networking with other members, receive weekly marketing reports and be added to a private chat room which offers daily, realtime support and discussion. In the weekly MACRO INSIGHT trading call, veteran trader Imran Lakha, walks you through his macro cross-asset watchlist, discusses the main market moving narratives, shares his charts and the top trades that he is doing for his own portfolio. By joining a community of like-minded traders you can discuss trade ideas, increase your confidence and take advantage of opportunities in the market. This is a unique perspective into how a seasoned professional identifies opportunities, executes trades and manages risk. Every call ends with a live Q&A and an opportunity to share your ideas and receive coaching and guidance for your own trading.
DISCLAIMER OPTIONS INSIGHT CONTENT is presented for educational purposes only. The information presented by OPTIONS INSIGHT should NOT be construed as investment advice. Always consult a licensed investment professional before making important investment decisions. The opinions expressed by OPTIONS INSIGHT are those of its founder Imran Lakha who shall NOT be liable for losses resulting from investment decisions based on information or viewpoints presented by Options Insight.