Digital belongings have been one of many tales of 2021 however have been largely untradeable outdoors of spot buying and selling on account of dimension and lack of choices availability. /BTC the bitcoin futures commerce at a 5 Bitcoin notional worth, whereas /MBT the micro contract at 1/10th the scale could be a bit too small, and neither have a liquid choices market.
MARA is a digital asset mining firm with a rolling correlation to /BTC above 0.50 and as excessive of 0.80. For context, that is roughly the vary of correlation between AAPL, the most important element weighting of the SP500, and SPY the SP500 ETF.
With appreciable name aspect skew within the choices pricing and volatility closely skewed within the brief durations, MARA units up as an fascinating lengthy diagonal play to the upside. If this continues into 2022, shopping for the 40 delta name choice within the 40-70 day vary and promoting the 20 delta shorter period name (15-30 DTE) ought to arrange as an affordable lengthy delta play with excessive constructive gamma publicity and simply sufficient theta to offset brief time period strikes to the draw back.
MARA:/BTC Rolling Correlation
— Written by Nick Battista, Host of Choices Buying and selling Ideas LIVE