Petro-Lwa Strategy VIII · User Manual

The Long Put Synthetic Straddle

HODLer hedge · Profit from crashes · Keep all upside

What is this strategy?

This is the HODLer's secret weapon. You already own 1 unit of spot BTC or ETH. You then buy two ATM puts. Why two? The first put cancels out the spot — that combination is mathematically equivalent to a long call. The second put adds downside profit. The result: a "synthetic straddle" that profits if the asset rallies or crashes. The cost is the two put premiums; max loss is limited and known.

When does it trigger?

The Pine indicator PETRO-LWA-VIII.pine fires when both of these are true:

SignalDefault
Trend is neutral (price not stacked bull AND not stacked bear)true
IV Rank rich enough to suggest upcoming move≥ 55

Translation: price is undecided but the option market expects fireworks — protect your spot before the storm.

1

Download the Pine script

⬇ Download PETRO-LWA-VIII.pine
2

Install on TradingView

Chart → Pine Editor → paste → Save → Add to chart.

▼ Pine Editor TradingView //@version=6 indicator("PETRO-LWA VIII · Synth Straddle") neutral = not bull and not bear setup = neutral and iv_rank ≥ 55 label.new("🟣 VIII · SYNTH STRADDLE") [Save] [Add to chart] CHART · BTCUSD ⟷ 🟣 SYNTH STRAD + ADD TO CHART
3

Read the chart label

A purple circle appears above the candle with the live IV-rank value — confirming the market expects a move but isn't committed to a direction.

🟣 VIII · SYNTH STRADDLE HODL + puts · IV 63 buy 2 ATM puts against your spot BTC/USD · 1D
4

Set up the alert

Right-click → Add alert. Condition: “PETRO VIII · Synth Straddle”. Bridge URL in webhook.

Create Alert CONDITION PETRO·VIII ▸ PETRO VIII · Synth Straddle ▸ Once Per Bar Close WEBHOOK URL https://lasiren-bridge.cryptolwa.app/alert MESSAGE {{ticker}} synth straddle iv {{plot}} CREATE
5

Execute the options trade on Deribit

Already hold spot. Pick a 60-90 DTE expiry. Buy 2 ATM puts against each unit of spot. If BTC crashes, the two puts overpower the spot loss. If BTC moons, the puts expire worthless but the spot rallies untouched. If price ranges then both pieces decay — exit the puts once the move is decisive.

DERIBIT · BTC SYNTHETIC STRADDLE · 75 DTE Hold 1 BTC spot · buy 2 ATM puts LEG STRIKE PREMIUM HOLD SPOT 1.00 BTC at 100k (your stack) ▶ BUY 1 PUT 100k ATM - 5,200 (debit) ▶ BUY 1 PUT 100k ATM - 5,200 (debit) PROTECTION COST ≈ 10,400 USD (10.4%) · unlimited up + crash profit down Max loss occurs if BTC closes flat at 100k on expiry — premiums burn

Risk profile

Max Loss2 × Put Premium
Max RewardUnlimited Both Sides
Best MarketPre-Catalyst Uncertainty

When NOT to use this

  • Strong uni-directional trend — you don't need two puts; either one is wasted premium.
  • Low IV — puts are cheap because nobody expects the move; setup is incomplete.
  • You don't actually hold the spot — without the underlying, this is just a long-puts trade, not a synthetic straddle.

Plain-English glossary

SyntheticA position that mimics another using a different combination of legs.
HODLLong-term spot holding — refusing to sell through volatility.
ATM PutPut option with strike equal to current spot.
Spot + PutSpot + 1 put = synthetic long call (the classic protective put).
Two putsThe second put converts protection into a profit-from-crash leg.
IV RankToday's vol as a percentile vs. last year.
ThetaDaily decay — bites this trade if price stays flat.
InsuranceThe mental frame: you pay premium for peace of mind.