10X Research Finds Traders Can Earn 17% More by Selling Bitcoin Call Options
CryptoNewsTerminal Staff20 May, 2024
10X Research Finds Traders Can Earn 17% More by Selling Bitcoin Call Options
## 10X Research: Sell OTM Call Options on Bitcoin to Boost Returns 10X Research, a crypto market analysis firm, has released a report suggesting that traders can increase their returns when holding Bitcoin (BTC) by selling out-of-the-money (OTM) call options. Covered Strangle Strategy The strategy recommended by 10X Research is known as a covered strangle. It involves holding BTC spot while simultaneously selling an OTM call option with a strike price above the current market value. Estimated Returns According to the report, traders could generate an estimated 11% yield from selling call options and 5% yield from selling put options, resulting in a combined 17% return on the strategy. Bullish Outlook Required However, this strategy is only suitable for traders with a bullish outlook on Bitcoin who believe it will remain above $50,000, even during a market correction. Disclaimer 10X Research cautions that this strategy is not risk-free and is only recommended for experienced traders with a strong understanding of options trading.
