Flash Idea: BTC CALL SPREAD Sept 24

delta.theta
2 min readAug 25, 2021

After the impressive growth during the last month, BTC rate slightly corrected from the local highs (50k+), which seems like an attractive opportunity to enter the market if you expect the trend to continue.

Flash Idea:
Instead of buying bitcoin on the spot market, given the current and expected volatility, it is possible to use a call spread strategy.

In this situation, such a strategy may look like selling 2 call options at 60,000 with a strike date of September 24th at an estimated premium of $15 per 0.01BTC, and buying a call option 52,000 with a strike date of September 24th (an estimated premium of $32 per 0.01BTC contract) out of the premium received.

The strike date was chosen as the date with the highest liquidity, when the end of the month and the end of the third quarter coincided, with a sufficient time reserve before the option is executed.

Risks: Since the idea is to sell two call options at 60,000, after the price crosses above 61,000 (strike price + premium), there is the potential for a loss in the form of a reduced premium or a net loss after the price reaches 71,000. To limit this risk, it would be possible to buy a call option at the market price with a strike date of September 24th and a strike price of 61,000. The exact strike mark depends on the profit lock-in level that you chose.

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