On October. 1, the cryptocurrency market experienced a 9.5% pump that drove Bitcoin (BTC) and Ether (ETH) to their highest levels in 12 days. A diverseness of reasons take been attributed to the price motility, including the Us consumer price index, exchanges' diminishing supply and a "cup and handle" bullish continuation chart formation.

Traders are not likely to find an explanation for the sudden move, apart from investors regaining confidence afterwards the Sept. 19 drib was attributed to contagion fears from Mainland china-based property developer Evergrande.

The Ethereum network has been facing some criticism due to the $20 or higher transaction costs caused past the nonfungible token (NFT) sales and decentralized finance (DeFi) activeness. Cross-concatenation bridges connecting Ethereum to proof-of-stake (PoS) networks have been partially solving this outcome, and Friday's Umbrella network oracle service launch shows just how fast interoperability is advancing.

It is likewise worth noting that China's announced even stricter rules last week had a positive touch on the volumes seen at Decentralized exchanges (DEX). Centralized crypto exchanges, including Huobi and Binance, announced service suspension for Chinese residents, and a significant outflow of coins followed this. At the same time, this increased motion on Uniswap and the decentralized derivatives exchange dYdX.

Even with all this volatility, there are still reasons for investors' year-cease bullishness on Ether. At the aforementioned fourth dimension, the limitations imposed by Ethereum layer-one scaling as well caused some of its competitors to present pregnant gains over the by couple of months.

ETH toll vs. AVAX, SOL, ATOM. Source: TradingView

Discover how Ether'south 58% positive performance in three months has been significantly beneath those emerging proof-of-pale (PoS) solutions that offer smart contract capabilities and interoperability.

For bullish traders who retrieve Ether price will break to the upside but are unwilling to face the liquidation risks imposed by futures contracts, the "long condor with phone call options" strategy might yield more than optimal results.

Let's have a closer await at the strategy.

Options are a safer bet for fugitive liquidations

Options markets provide more flexibility to develop custom strategies and at that place are two instruments available. The telephone call option gives the heir-apparent upside price protection, and the protective put selection does the contrary. Traders can too sell the derivatives to create unlimited negative exposure, which is like to a futures contract.

Ether options strategy returns. Source: Deribit Position Architect

This long condor strategy has been set for the Dec. 31 expiry and uses a slightly bullish range. The same bones structure can also exist practical for other periods or price ranges, although the contract quantities might need some adjustment.

Ether was trading at $three,300 when the pricing took identify, but a similar result can be achieved starting from any price level.

The start merchandise requires ownership 0.fifty contracts of the $3,200 telephone call options to create positive exposure to a higher place this cost level. And then, to limit gains above $three,840, the trader needs to sell 0.42 ETH call choice contracts. To farther limit gains above $v,000, another 0.70 telephone call choice contracts should be sold.

To complete the strategy, the trader needs upside protection above $v,500 by buying 0.64 call selection contracts if Ether price skyrockets.

The 1.65 to 1 gamble-reward ratio is moderately bullish

The strategy might sound complicated to execute, but the margin required is only 0.0314 ETH, which is also the max loss. The potential net profit happens if Ether trades between $iii,420 (upwards iii.6%) and $5,390 (upwards 63.3%).

Traders should remember that it is also possible to close the position ahead of the Dec. 31 decease if there'due south enough liquidity. The max net gain occurs betwixt $3,840 and $v,000 at 0.0513 ETH, which is 65% college than the potential loss.

With over 90 days until the expiry date, this strategy gives the holder peace of mind because there is no liquidation risk like futures trading.

The views and opinions expressed here are solely those of the author and exercise not necessarily reflect the views of Cointelegraph. Every investment and trading move involves hazard. You should conduct your own research when making a decision.