Using a SOL Bear Call Spread During Token Unlock Selling

Summary

The note presents a bearish-to-neutral view on SOL amid the continued release and sale of locked tokens and price action described as lower highs near newly formed supply zones. It outlines a bear call spread: sell a call at a lower strike and buy a call at a higher strike with the same expiry. The example sells the $135 call and buys the $140 call, with a target of SOL below $135.

The stated rationale is that further token sales could weigh on price, while the spread earns a net credit if SOL stays below the short strike. The note gives a maximum profit of $18 per contract and a maximum loss of $32, citing a contract multiplier of 10. These figures apply to the stated structure and quoted premiums; the document offers no performance history or probability estimate. The trade is time-specific, and its directional thesis could fail if SOL rallies; the long call limits the spread's loss in that case.

Key ideas

• A bear call spread sells a call and buys another call at a higher strike with the same expiry.
• The proposed SOL position uses $135 and $140 calls and targets a spot price below $135.
• The stated thesis links potential downside pressure to continued locked-token offloading and lower highs near supply zones.
• The example reports $18 maximum profit and $32 maximum loss per contract, using a multiplier of 10.
• The spread limits losses from an upside move, but the market outlook and option prices are specific to the trade date.

Tags

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