Using a Bear Call Spread When SOL Resistance Caps Upside

Summary

This trade note uses a technical resistance thesis to motivate a defined-risk bearish options position in Solana. It argues that $160, previously treated as support, became resistance after a breach during a market sell-off that coincided with a SOL token unlock. A higher-time-frame chart is described as placing SOL in a potential trend-flip area, although the chart itself is not included in the text. The author expects sideways or downward price action and identifies a spot price below $160 as the trade’s target condition.

The proposed position sells a $160 call and buys a $165 call with the same expiry, creating a bear call spread for a net credit. The note reports a maximum profit of $16 per contract and a maximum loss of $34, with a contract multiplier of 10. These figures and the thesis are specific to the stated trade and expiry; the document offers no backtest or probability estimate. It cautions that the report is informational and should not be the sole basis for a trading decision.

Key ideas

• A former support level can become resistance after price breaks below it.
• The note links SOL’s break of $160 support to a market sell-off and a token unlock.
• A bear call spread sells a lower-strike call and buys a higher-strike call at the same expiry.
• The proposed SOL position targets a spot price below $160 and limits risk through the long call.
• The stated payoff figures apply to the specific strikes, expiry, and contract multiplier in the note.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.