cointelegraph.com
Ether (ETH) has been making higher lows throughout 2021, and the current trend indicates that $1,800 might be the bottom for April. Even traders and investors who do not rely on technicals have become optimists after Visa initiated a pilot to settle transactions in USD Coin (USDC) through the Ethereum network.
Considering that Ether is currently trading at $1,810, any outcome between $1,790 and $2,545 (up 40.6%) yields a net gain. For example, a 15% price increase to $2,080 results in a 1.2 ETH net gain, or $2,500.
Meanwhile, this strategy's maximum loss is 1.04 ETH, which will happen if the price on April 30 is below $1,600 (down 12%) or above $2,545.
The Iron Condor strategy allure is the potential 1.2 ETH gain while losses are limited below $1,600 at expiry.
Overall this conservative strategy yields a much better risk-reward compared to leveraged futures trading because of the limited downside. The upfront cost (deposit) is 1.04 ETH, and this also reflects the maximum potential loss.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.