Petro-Lwa Strategy IV · User Manual

The Bear Put Backspread

Crash thunder · Capped risk · Uncapped downside profit

What is this strategy?

The Bear Put Backspread is the bear-market weapon. You sell one put close to the money and buy two puts lower down — a 2:1 ratio. The cash you receive from the short put pays for most of the two longs, so entry cost is often near zero. If price stays flat or rises, you keep the small credit. If the asset crashes, the two long puts gear up dramatically and produce uncapped profit. Petro-Lwa arms this either on a confirmed bearish trend break OR when price is near an all-time high with rich premium — both classic crash setups.

When does it trigger?

The Pine indicator PETRO-LWA-IV.pine fires when either of these two conditions is true:

PathwayConditions
Confirmed bearPrice < EMA50 < EMA200 & DD ≤ -10% from 180-bar high
Top-of-marketWithin -8% of ATH & IV Rank ≥ 60

Translation: either the breakdown is here, or euphoria has stretched the rubber band tight.

1

Download the Pine script

Click below to grab PETRO-LWA-IV.pine.

⬇ Download PETRO-LWA-IV.pine
2

Install on TradingView

Open a BTC/USD chart. Click Pine Editor, paste, Save, then Add to chart.

▼ Pine Editor TradingView //@version=6 indicator("PETRO-LWA IV · Backspread") setup_bear = trend_bear and dd ≤ -10 setup_top = near_ath and iv ≥ 60 setup = setup_bear or setup_top label.new("🔴 IV · BEAR BACKSPREAD") [Save] [Add to chart] CHART · BTCUSD ⤵ 🔴 BACKSPREAD + ADD TO CHART
3

Read the chart label

A red triangle drops above the bar (signalling a short bias) with the live drawdown and IV-rank values readable from the label.

🔴 IV · BEAR BACKSPREAD DD -12.3% · IV 64 trend broke · short the ratio BTC/USD · 1D
4

Set up the alert

Right-click → Add alert. Condition: “PETRO IV · Bear Backspread”. Webhook URL for the bridge.

Create Alert CONDITION PETRO·IV ▸ PETRO IV · Bear Backspread ▸ Once Per Bar Close WEBHOOK URL https://lasiren-bridge.cryptolwa.app/alert MESSAGE {{ticker}} bear backspread dd {{plot}} CREATE
5

Execute the options trade on Deribit

Pick an expiry 30-60 days out. Sell 1 ATM put (the financing leg). Buy 2 puts at -10 to -15% below spot. Net target: a small credit or zero. Profit explodes if BTC dumps; max loss is the difference between the two strike levels minus credit. Exit if price rallies above your short-put strike — the thesis is wrong.

DERIBIT · BTC PUT 2:1 BACKSPREAD · 45 DTE SPOT $100,000 · sell 1 ATM / buy 2 OTM PUT ACTION STRIKE PREMIUM ◀ SELL 1 PUT 100k ATM + 4,000 (credit) ▶ BUY 1 PUT 88k -12% - 2,000 (debit) ▶ BUY 1 PUT 88k -12% - 2,000 (debit) NET ≈ ZERO / SMALL CREDIT · free crash insurance Max loss in the dip-zone between strikes = 12k - credit; exit if rally invalidates thesis

Risk profile

Max LossStrike Difference
Max RewardUnlimited Downside
Best MarketCrash / Late-cycle Top

When NOT to use this

  • Strong bull regime — your short put will get tested constantly; the crash you need never arrives.
  • Already-crashed asset — vol is rich, OTM puts are expensive, and most of the move is gone.
  • Tiny illiquid altcoins — option spreads will be too wide on Deribit; stick to BTC/ETH.

Plain-English glossary

BackspreadSelling fewer options than you buy; you are net long extras = explosive payoff direction.
Ratio (2:1)Two long contracts to one short. The math behind asymmetric profit.
Drawdown (DD)How far below a recent high price has dropped, in percent.
ATHAll-Time High. Often a fertile setup for backspreads via euphoria.
Net CreditYou receive cash when entering the trade.
IV RankToday's volatility on a 0-100 scale vs. last year.
Short PutYou sold a put — obligated to buy if it's exercised.
Long PutYou bought a put — wins on crashes.