How Low Can They Go?

BY LICIA LESLIE 

January 14, 2024

Hi Shoppers,

 

After this massive reversal, where does Bitcoin (Ticker: BTCUSD) go from here?

 

I am writing this Saturday morning and you will receive it sometime on Sunday.

 

We are closed Monday so by Tuesday, as BTCUSD trades nonstop, we will have much more information on the chart.


As of now, here is the the BTCUSD chart:

It closed below my support level, but it is hanging right around there.

 

As you can see, BTCUSD has been bouncing off this area since December 11, 2023.


If BTCUSD cannot hold this support, I like puts in BITO:

Of course with the stock being so volatile, the implied volatility or pricing of the options is elevated.

I think the Jan26 expiration is the best deal and I like the 21 puts.

 

Be sure to watch that BTCUSD is trading lower.

 

I think BITO can trade close to $19.00 which will take these puts to two bucks.

 

If BTCUSD is trading higher, the Jan26 21.50 calls may be in order.

 

To get my trades in real time, you need to become an Option Shopper.

 

Come join us! It’s fun!

 

Thanks for Reading … See You Next Tuesday,

Licia Leslie

Licia Leslie

Head of Technical Analysis

pit profits

See what's hot at option pit

CAPITOL GAINS: SMR Aug16 7 call closed for a 150% gain

DELTA STRIKE: VLY Mar15 8 puts closed for a 88% gain

PFE May17 26 calls closed for a 66% win

OP MENTORING: SPY Mar22/19 510 put calendars and 520 calls for 6.4% gain

OPTION SHOPPER: ERX Mar28 65 calls closed for a 90% gain

The harami candle tells us not so fast with that rally.

 

We may not be going higher.

 

It negates the direction of the previous day’s large body candle, in this case higher.

 

My support and resistance levels are the highs and lows of the most recent consolidation of SPY, $467.50 and $477.40.

Today will be interesting.

Thanks for Reading … See You Next Tuesday,

Licia Leslie

Licia Leslie

Share This Article

About the Author

Licia Leslie

Licia Leslie

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

Popular Posts

Categories

Stay Updated

Subscribe to our newsletter for daily trading insights

Upcoming Events

FOMC Meeting

2:00 PM EST

Earnings Season Begins

Pre-market

Options Expiration

Market Close

NFP Report

8:30 AM EST