A Defined-Risk Bitcoin Call Spread for a Moderately Bullish View

Summary

The document proposes a BTC call debit spread for a moderately bullish outlook. It buys a call at the lower strike and sells a call at a higher strike with the same expiry, paying a net debit. At expiry, the position benefits from a rise through the upper strike, while a decline limits the loss to the initial premium paid. The stated target is a BTC price above the short-call strike.

The rationale is that BTC was near its highs without clear signs of retracement or support failure. The author also points to open interest at higher strikes as possible resistance that could shape the trade’s profit potential. This is a directional market view illustrated with a specific trade, not evidence from backtesting or a general signal. The spread caps both downside loss and upside gain, and its outcome depends on the underlying price at expiry as well as the debit paid.

Key ideas

• A call debit spread buys a lower-strike call and sells a higher-strike call with the same expiry.
• The maximum loss is limited to the initial net debit.
• The spread’s payoff is capped above the short-call strike.
• Open interest at higher strikes may mark potential resistance, but does not guarantee it.
• The example expresses a bullish view and does not establish a tested strategy.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.