This bullish Bitcoin options strategy lets traders speculate on BTC price with less risk By Cointelegraph

Business


This bullish Bitcoin options strategy lets traders speculate on BTC price with less risk

Historical data shows that it is nearly impossible to consistently predict Bitcoin’s price action and many traders that attempt this end up losing money. Now that trades near $50,000, the ultimate goal for most traders is to hold on to their current holdings and incrementally add to them in a way that is not terribly risky.

Options strategies provide excellent opportunities for traders who have a fixed-range target for an asset. For example, using leveraged futures contracts might be a solution for a scenario where one expects a price increase of up to 28% over the next month. Of course, using a tight stop loss lessens the viability of the trade.

Profit / Loss estimate. Source: Deribit Position Builder