  After a market downturn, especially in an uncertain economic environment such
as the current state, there can be a relatively long period with a sideways
market, where indexes, stocks, etc., move in channels with support and
resistance levels. We discuss option pricing in such scenarios, in both cases
of unattainable as well as attainable boundaries, and obtain closed-form option
pricing formulas. Our results also apply to FX rates in target zones without
interest rate pegging (USD/HKD, digital currencies, etc.).
