SOL Trade Idea: 29MAR-$110/155 Short Put Spread

NOT INVESTMENT ADVICE

With $SOL experiencing a healthy 20% pullback over the last few days, bids have been steadily picking up.

We’ve identified $165 as a potential area of support with price previously rejecting the zone several times, as well as a confluence with the 38.2 Fib retracement level from the latest swing low to the latest swing high.

The 29MAR-$110/155 Short Put Spread offers a balanced approach to earning yield, using USDC as collateral.

Not only does it provide an opportunity to collect premiums (hence generating yield), but a put spread also reduces collateral needs.

This setup is particularly appealing for those who are moderately bullish on $SOL, expecting it to stay above $155.

Potential Outcomes:

1. Best Case: SOL stays above $155 by expiration. In this scenario, the put option sold expires worthless, allowing you to keep the entire premium received as profit.

2. Moderate Case: If SOL is slightly above or just below $155. If the price hovers around the strike price, the option may retain some value, leading to a partial loss of the premium received.

3. Worst Case: If SOL falls below $155, the short put option is deeply in the money and you lose some of your collateral posted for the short put.

Start trading: https://app.sdx.markets/trade/SOL
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