With this straightforward Bitcoin options strategy, investors can go long with little downside risk.

The dip to $15,500 on November 21 was expected to be the cycle bottom, but Bitcoin (BTC) hasn’t been able to close above $17,600 on a daily basis for the past 18 days.

The price movement is obviously unsettling traders, and the confirmation of BlockFi’s collapse on November 28 did not aid any prospective Bitcoin price rebound.

Several international authorities made a commitment to concentrate on enhancing crypto regulation after the event.

Unfortunately, it is impossible to predict when market mood will rise and a fresh bull run will begin. Despite this, there is a low-risk options method that might produce a respectable return with no risk for traders who predict BTC will hit $20,000 by December 30.

Using the bullish Iron Condor approach like a pro

Purchasing Bitcoin futures pays dividends during bull markets, but dealing with liquidations when the price of BTC drops is the problem.

By the end of 2022, the bullish skewed Iron Condor strategy can maximize profits close to $21,000 and limit losses if the expiration price is below $18,000. It is important to remember that Bitcoin was trading at $16,168 at the time of this model’s price.

A downside protection tactic is the put option, which enables the holder to sell an asset at a defined price in the future. Selling this instrument (put), however, gives exposure to an increase in price.

Although the contracts for December 30 were used in the aforementioned example, it may be modified for various timeframes.

The desired profit range is from $18,350 to $24,000, as it is depicted above. The investor must short (sell) two contracts of the $20,000 call option and two contracts of the $20,000 put option in order to start the transaction. The buyer must then follow the same steps again for the $22,000 options with the same expiration month.

It is also necessary to purchase 5.8 contracts of the $18,000 put option to hedge against potential downside. In order to prevent losses from going above the level, 5.3 contracts of the $24,000 call option must be purchased.

If Bitcoin trades on December 30 between $18,350 and $24,000, this strategy results in a net gain. Net profits peak between $20,000 and $22,000 at 0.485 BTC ($7,860 at today’s prices), but they stay above 0.10 BTC ($1,620 at today’s prices) if Bitcoin trades between $18,350 and $23,600.

The initial investment for this Iron Condor strategy is the maximum loss, or 0.103 BTC ($1,670), which will occur on December 30 if Bitcoin trades below that price.

Every trading and investment decision carries risk, so readers should do their own research before choosing.