Volatility Alert: VMI Detects Potential Shifts
QCP’s Volatility Momentum Indicator (VMI) has been triggered this morning for both BTC and ETH, indicating that the market is entering a period of heightened volatility.
This signal is directionally agnostic, meaning it does not indicate spot direction but suggests that larger price movements are likely in the near-term.
BTC implied volatility on historical VMI signals
Trade Idea
Historically, switching from yield-generating to long convexity (buy option) strategies on the back of the signal has helped to optimize portfolio returns.
Given the direction-agnostic nature of the signal, we would suggest cheap directional structures to amplify returns on a big spot move.
Bullish Uptober
- 25-Oct ERKO Call
- Strike: 60,000
- Knock-out: 75,000
- Cost: 2100 USD per
- Max payout: 7.14x
Bearish Hedge
- 27-Sep ERKO Put
- Strike: 55,000
- Knock-out: 45,000
- Cost: 1770 USD per
- Max payout: 5.65x
Spot ref: 56,400
Live VMI signals are available to QCP clients. To receive VMI signals, kindly subscribe via your designated trading channel. For onboarding, please contact [email protected] .
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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