Bullish traders cast low-risk Ethereum options bets with this clever strategy By Cointelegraph

Bullish traders cast low-risk Ethereum options bets with this clever strategy

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 (NYSE:) initiated a pilot to settle transactions in USD Coin (USDC) through the network.

Ether price in USD at Coinbase. Source: TradingView

Given that Ether’s price is looking like it’s ready to pursue new yearly highs, there’s a few investment options on the table. Buying and holding is an excellent strategy, as well as a leveraged long position up to 2x. The problem lies on the downside, as a 20% move would result in a 40% loss using futures contracts. Not to mention there is not much room for additional leverage as it requires a considerable upfront.

Profit / Loss estimate. Source: Deribit Position Builder