Bitcoin Call Ratio Spread for a Resistance-Bound Market

Summary

The document proposes a call ratio spread for a view that Bitcoin will face resistance around $67,000 and $70,000. It describes buying one out-of-the-money call at the lower strike and selling three calls at the higher strike, all with the same expiry. The June 28, 2024 example buys the $67,000 call and sells three $70,000 calls. Its stated target is a spot price below $70,000, with maximum profit at $70,000 on expiry.

The rationale cites conflicting U.S. jobs data, Bitcoin trading below $66,000, consecutive spot ETF outflows, breached support, and the author’s identified supply zones and options-expiry maximum-pain level. These market observations support the trade thesis but are not evidence from a backtest or probability model. Although the example earns an initial credit, its net short call exposure can produce significant losses if Bitcoin rises well above the higher strike. The document is a time-specific trade idea and says it should not be the sole basis for a trading decision.

Key ideas

• A call ratio spread can express a view that price will rise only modestly or remain below a resistance level.
• The example buys one $67,000 Bitcoin call and sells three $70,000 calls for the same expiry.
• The stated maximum profit occurs at the higher strike when the options expire.
• The initial credit does not cap risk because the structure has net short call exposure.
• The rationale relies on contemporaneous price, ETF-flow, technical-level, and expiry observations.

Tags

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