In the context of the Bitcoin halving event, using the long version of the Iron Condor strategy to deal with expected market fluctuations requires investors to accurately predict the market's fluctuation range. Halving events typically result in large swings in Bitcoin prices because they reduce the rate of supply of new Bitcoins and are a scheduled economic event designed to occur every four years. At this time, market uncertainty and changes in investor expectations can cause significant price fluctuations.

Overview of the long iron eagle strategy

The Iron Condor strategy is an option strategy consisting of four options with different strike prices, including two buy options (one call and one put) and two sell options (one call and one put), designed to benefit from sideways market movements. This strategy is suitable for investors who expect the market to experience an increase in volatility.

Strategy Building

To use the Iron Condor strategy during the Bitcoin halving, investors should follow these steps:

1. Predicted volatility range: Based on historical data and market analysis, predict the possible volatility range of Bitcoin prices before and after the halving.

2. Select the strike price:

Select two put options with lower strike prices: one for selling (closer to the current market price) and one for buying (further away from the current market price).

Select two call options with higher strike prices: one to buy (slightly above the current market price) and one to sell (further away from the current market price).

3. Open positions: Open these four positions at the same time to construct the Iron Condor strategy.

Long Iron Eagle Strategy Hand in Hand

Based on the current (as of writing) Bitcoin price of $63,980, set the following long-term Iron Eagle strategy execution price and direction:

1. Sell a put option with a low strike price (-1): Assuming you choose a strike price of $60,000, you expect the price of Bitcoin will not fall to this level, thereby collecting the premium for selling the option.

2. Buy a put option with a lower strike price (+1): Choose a strike price of $59,000 to limit the risk if the market reverses and falls.

3. Buy a high strike price call option (+1): Let’s say you choose a strike price of $68,000, expecting the price of Bitcoin to rise to this level or higher.

4. Sell a higher strike call (-1): Choose a $69,000 strike price to collect the premium while limiting the risk if the market moves extremely higher.

How to operate the Long Iron Eagle strategy

Opening a position: Execute the above four steps at the same time to establish a long-term iron eagle position. (No need to change positions frequently)

Profit conditions: The best case scenario is that the Bitcoin price is between $68,000 and $60,000 at expiration, maximizing the value of the short call and put options while the long options are not exercised.

Risk Control: If the Bitcoin price moves outside the $59,000 to $69,000 range, the maximum loss will be limited to the net cost difference between buying and selling the options, plus or minus any gain or loss due to price fluctuations.

Precautions

Costs and Premiums: When long iron condors, you will incur costs to buy options, but you can partially offset these costs by collecting premiums by selling options.

Market Prediction: This strategy is based on the prediction of market volatility, especially before and after important events such as the Bitcoin halving event. The accuracy of predicting market volatility is crucial to the success of the strategy.

You should also be careful when opening a position. Volatility will be overestimated when changing positions, so it is better to do it before that.