Ethereum Option Strategy Infographic
A visual guide to a defined-risk option strategy for Ethereum, based on Delta Exchange data.
Live Ethereum Price Action
Monitor real-time Ethereum price movements directly within the infographic.
Market Pulse: Current Ethereum Analysis
Detailed technical readings extracted from Ethereum charts across various timeframes, indicating the current market sentiment and potential movements.
15-Minute Chart
**Trend:** Sideways with a potential bearish reversal.
**Stochastic RSI:** 5.20 (oversold), %K/%D crossover indicates possible upward movement.
**EMA:** Price near EMA 20 (~3,744), below EMA 50 and 100, suggesting short-term support.
**Key Pattern:** Bearish Engulfing near resistance.
Ethereum price shows sideways movement with potential bearish reversal. Stochastic RSI at 5.20 is oversold, hinting at upward movement. Price near EMA 20 (~3,744), below EMA 50 and 100, suggesting short-term support. Bearish Engulfing near resistance.
1-Hour Chart
**Trend:** Sideways to slightly bearish.
**Stochastic RSI:** 4.64 (oversold), %K/%D crossover hints at reversal.
**EMA:** Price below all EMAs, with EMA 20 flattening at ~3,754.
**Key Pattern:** Doji forming, indicating indecision.
Ethereum price shows sideways to slightly bearish trend. Stochastic RSI at 4.64 is oversold, hinting at reversal. Price below all EMAs, with EMA 20 flattening at ~3,754. Doji forming indicates indecision.
1-Day Chart
**Trend:** Uptrend with recent pullback.
**Stochastic RSI:** 16.18 (oversold), %K/%D crossover suggests potential bounce.
**EMA:** Price above EMA 20 (~3,508), below EMA 50 and 100, showing short-term strength.
**Key Pattern:** Hammer near support, hinting at reversal.
Ethereum is in an uptrend with recent pullback. Stochastic RSI at 16.18 is oversold, suggesting potential bounce. Price above EMA 20 (~3,508), below EMA 50 and 100, showing short-term strength. Hammer near support hints at reversal.
1-Week Chart
**Trend:** Uptrend.
**Stochastic RSI:** 97.23 (overbought), %K/%D crossover indicates possible correction.
**EMA:** Price above all EMAs, with EMA 20 at ~2,711.
**Key Pattern:** Morning Star forming, suggesting bullish continuation.
Ethereum is in an uptrend. Stochastic RSI at 97.23 is overbought, indicating possible correction. Price above all EMAs, with EMA 20 at ~2,711. Morning Star forming suggests bullish continuation.
Strategy Blueprint: Iron Condor (Ethereum)
An Iron Condor is constructed by selling two vertical spreads: an out-of-the-money call spread and an out-of-the-money put spread. This creates a profitable range with defined risk on both sides for Ethereum.
Contract Size: 0.01 ETH per contract
Number of Contracts: 10
Payoff Profile at Expiry (Ethereum)
The strategy's success hinges on Ethereum's price remaining between the two short strikes at expiration. Here are the key financial outcomes for our 10-contract position.
Maximum Profit
$4.865 USD
If ETH price is between $3,700 & $3,800
Maximum Loss
$5.135 USD
If ETH price is below $3,600 or above $3,900
Lower Breakeven
$3,651.35
Upper Breakeven
$3,848.65
Capital Required
$14.28 USD
Strategy Validation
Comparing calculated values with external tools for accuracy. The provided screenshot confirms the following:
| Metric | From Strategy | From Calculator | Match |
|---|
Trade Management Plan (Ethereum)
A successful strategy requires a clear plan for managing the position until expiration.
Intraday Actions
Monitor continuously. Consider exiting if Ethereum's RSI moves out of the neutral zone (e.g., below 70 for calls) or if there's a significant price movement threatening a breakeven point.
Positional Actions
If the strategy remains profitable, carry it forward. Pay close attention to the 50 EMA on the daily chart and overall market sentiment to decide whether to hold or close the position before expiry.
