$80,000 BTC Options: Discussion on Call Spread Strategy

After Bitcoin (BTC) reached $80,000, the call spread strategy is gaining attention in the options market once again. This strategy involves buying a call option with a lower strike price and selling a call option with a higher strike price, allowing traders to predefine their profit and loss range. Industry experts prefer call spreads in anticipation of BTC's next upward phase. For instance, buying an $80,000 call option and selling a $90,000 call option limits both profit and loss. The Chief Business Officer of Deribit mentioned that call spreads are an attractive method for exposure to upward movements in September. He explained that due to the relatively high prices of put options for downside protection, call spreads can serve as an alternative to lower the cost of participating in the upside. Marcus Tilley suggested a combination of holding BTC spot and selling the $90,000 September call, stating that increased implied volatility generates profits through premiums while reducing risk. Additionally, on September 4, 2,000 contracts of the $82,000 strike BTC call option were traded, with a premium of $2.9 million. However, the options market is also showing signs of stronger demand for downside protection. The average return for BTC in September has been recorded at -3% since 2013, and the discussion of call spreads is interpreted as a trend for traders to clarify their profit and loss structure during periods of increased volatility.

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