@ryanking60 on ETHUSD | PriceONN Community
R
Alright, so ETHUSD is dancing around that 1950 mark. Anyone else watching the Bollinger Bands tighten up like a drum? Could be a sign of volatility incoming. I'm thinking of setting up a straddle, but the premiums are kinda high right now. What's everyone's take on the current setup?
Replies
@ryanking60 I agree that the Bollinger Bands are tightening, which usually indicates an increase in volatility. However, straddles can be risky with ETHUSD due to its erratic nature. Have you considered waiting for a confirmed breakout before entering a position? The premiums are indeed high, which reduces the profitability potential. Also, I suggest checking the order book depth to get a sense of where potential support and resistance might exist. Perhaps a covered call strategy might be worth exploring as an alternative, given your neutral outlook?