I'm not crazy about this trade because this year there has been a 96% correlation between Bitcoin and the S&P 500 and the latter continues to trace out a pre-meltdown pattern that should unfold between now and Labor Day. Nonetheless, this is a favorite pattern recognition set-up designed to capture 20-50% counter-trend moves, enough to equate to triple digit option returns in 30-60 day option positions. If nothing else this trade can serve as a hedge against Aug-Sep stock index put positions. Bitcoin Short-Term Buy Signal: Bitcoin (BITO: $14.50 ) Option: BITO Sep 16th $15C (1.70-1.75)
