In bitcoin Kicking a bullish -time Bullish October on a strong note, rising to recording highs of over $ 126,000, entrepreneurs who missed the early rally may have felt the urge to jump.
If the Fomo of that latecom, or afraid of disappearing, is hurting, here are some BTC options that are favored by analysts that can be worth considering the wave ride wisely.
The call is spread
Markus Thielen, founder of 10x researchPrefers to buy a higher strike out-of-the-money (OTM) call or spread call.
“Buying a 1-2 month out-of-the-money (OTM) call or spreading calls (for example, $ 130,000/$ 145,000) allows entrepreneurs to participate further upside down without paying for the implied volatility,” Thielen said in a note to clients Monday.
A call option gives the consumer right, but not the obligation, to buy the underlying possession at a predetermined price at or before the other day. A consumer call is explicitly bullish on the market.
A bull call spread is a approach to options where you buy a call option at a lower strike price and simultaneously sell another call option at a higher strike price, both have the same expiration date, similar to $ 130,000/$ 140,000 spreads suggested by Thielen.
Selling a higher call strike limits your potential income but also reduces the upward cost of entry into the trade. More importantly, this approach limits your maximum loss to the net premium paid to the spread of the event that the market unexpectedly collapses, making it a great play for entrepreneurs who want to balance the potential earned at a limited risk.
While the BTC is expected to rally by the end of the year, the possibility of a sudden correction, triggered by the extraction of income, cannot be fully decided.
Noteworthy, traders have booked spreading calls through block trading, Asia Business Development head Lin Chen told CoinDesk.
The flows are dominated by large blocks of spreading calls, either very long dated (Sep 2026) or very short-dated, probably monthly, “Chen said.” On the other hand, obviously, we also see a lot of profits. “
Financing calls are spreading to the puts
Another way to get bullish exposure while reducing the initial cost is to supply bull calls that are spreading by writing (sale) of the lower OTM strike that puts options, according to Greg Magadini, director of derivatives in Amberrdata.
“Selling OTM to put and using the proceeds to buy many spreading calls, rather than a clear OTM call, can help reduce the term volume structure of the cost volume, still getting upside down,” Magadini said.
However, it is important to understand the risks associated with this approach. The sale of placement options is obliged to buy BTC on Put Strike price if the market drops under that level, exposing you to potentially significant risk if the BTC price drops dramatically.
While the Bull Call Spread limits the losses from the side of the call to the net premium fee, the short leg leg introduces further exposure to the downside that may be greater than the previously received credit.
Extensive speakers, BTC calls, especially those with longer duration, are cheaper compared to options, according to Magadini.
Finally, for those seeking long-term exposure, BTC purchase and handling has the most rewarding approach. Since 2011, BTC prices have been saving from $ 1 to over $ 120,000.
