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Bitcoin ETF options begin trading, what's next?
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Investment Opportunities with BlackRock’s IBIT Options

Investment Opportunities with BlackRock’s IBIT Options
The SEC’s approval of options trading on $iShares Bitcoin Trust (IBIT.US)$ is more than just a headline—it’s a goldmine of opportunity for savvy investors. With Bitcoin's legendary volatility now married to the precision of options, we can play the game smarter, not riskier. Let’s explore some standout strategies in a fun and engaging way.
1. Selling Covered Calls: Turn Your ETF into a Payday
Got $iShares Bitcoin Trust (IBIT.US)$ shares or $Bitcoin (BTC.CC)$ sitting in your portfolio? Time to put them to work! By selling covered calls, you rent out the rights to your shares at a specific price (the strike price) and earn a premium in return.
Why It’s Smart: Bitcoin ETFs have been pulling in billions of inflows, suggesting strong demand
Covered calls are a way to monetize this trend without giving up your ETF holdings—perfect for markets with moderate price action. Plus, with the SEC’s 25,000-contract cap, there’s less likelihood of wild price swings
Keep in Mind: If Bitcoin suddenly skyrockets, you might have to sell your ETFs at the strike price, but hey, that’s a high-quality problem to have.
2. Strangle Strategy: Hedge the Drama, Embrace the Drama
If you live for the unpredictability of Bitcoin but don’t want to gamble it all, the strangle strategy might just be your new best friend. This strategy involves buying both a call and a put option, each with different strike prices, on the same expiration date.
Why It’s Fun and Effective: Bitcoin’s price has a flair for the dramatic—$1,000 moves in a single day? Not unheard of! A strangle lets you profit no matter which way the price moves, as long as it moves big enough. With IBIT options under strict surveillance and growing institutional adoption, volatility is your playground
Example: Imagine Bitcoin ETFs hovering at $92,000. You buy a $93,000 call and a $91,000 put. If Bitcoin jumps to $95,000 or crashes to $89,000, you’re in the money either way. Let’s call it “chaos with a safety net.”
3. Protective Puts: Sleep Like a Baby in a Bitcoin World
Hodling your IBIT shares for the long term but worried about market nosedives? Protective puts are your insurance policy. This strategy involves buying put options to protect your holdings from significant losses.
Why It’s a Must: Bitcoin ETFs are maturing, but Bitcoin itself remains a volatile beast. Protective puts allow you to lock in a floor price, so if the market tanks, your portfolio doesn’t follow suit
Bonus: Think of this as the chill strategy—no FOMO, no panic selling, just peaceful nights knowing your downside is capped.
You may refer to the option bootcamp if you like
Investment Opportunities with BlackRock’s IBIT Options
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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