With Bitcoin Starting the seasonal October on a strong note, rising to detect heights over $ 126,000, resellers who missed the early rally may feel the urge to jump in.
If this latecomer’s fomo, or fear of missing out on, is hit, here are some Bullish BTC option games that analysts prefer, which may be worth considering running the wave smartly.
Call spreads
Markus Thielen, founder of 10x research, prefers to buy higher strike out of money (OTM) calls or call spreads.
“Buying 1-2 months out of money (OTM) calls or calls spreads (for example, $ 130,000/$ 145,000) allows traders to participate in additional upside without overpayment for implied volatility,” Thielen said in a note to clients on Monday.
A call opportunity gives the buyer the right, but not the obligation, to buy the underlying asset at a predetermined price of or before a later date. A call buyer is implicit Bullish on the market.
A bull call spread is a setting strategy where you buy a call option at a lower strike price and at the same time sell another call option at a higher strike price, both with the same expiry date, equivalent to $ 130,000/$ 140,000 spread suggested by Thielen.
Selling the higher strike calls limits your potential profits, but also reduces the pre -cost of entering the trade. More importantly, this strategy limits your maximum loss to the net premium paid on the spread in case the market unexpectedly falls, making it an ideal game for dealers seeking to balance potential gains with limited risk.
While BTC is expected to collect in the end of the year, the likelihood of a sudden correction, triggered by profit, cannot be completely excluded.
Interestingly, dealers are booking calls spreads via Block Trades, Deribit’s Asia Business Development Head Lin Chen told Coindesk.
Streams are dominated by large blocks of call spreads, either very long dated (September 2026) or very short -dated, probably monthly, “said Chen.” On the other hand, of course, we also see a lot of profits. “
Financing calls spread with puts
Another way to get bullish exposure while minimizing the original costs is to finance Bull Call’s spreads by writing (selling) Lower Strike OTM Put options, according to Greg Magadini, director of derivatives in Amberdata.
“Selling the OTM set and using the proceeds to buy more calls spreads instead of a direct OTM call can help minimize the term Structure Vol expenses, still catching upside down,” Magadini said.
However, it is important to understand the risks associated with this strategy. Selling put options commits you to buy BTC at Put’s strike price if the market falls below this level, which exposes you to potentially significant downward risk if BTC’s price falls sharply.
While Bull Call scattered boundaries loss from the call side to the paid net premium, the short Put -Bone introduces further exposure to downward downward, which may be much greater than the original credit received.
Virtually BTC calls, especially those with longer duration, are cheaper compared to PUT settings, according to Magadini.
Finally, for those looking for prolonged exposure, buying and keeping BTC has historically been the most rewarding strategy. Since 2011, BTC’s award has Skyrocket from $ 1 to over $ 120,000.
