BTC Call Butterfly for a Potential Expiry-Targeted Retracement

Summary

The article presents a BTC call butterfly for traders expecting a limited short-term rebound toward a specific price area. The structure buys one lower-strike call, sells two calls at a middle strike, and buys one call at a higher strike. In the dated example, the strikes are $68,500, $70,000, and $71,000, with the options expiring April 6, 2024. The stated maximum profit occurs if BTC is at the middle strike at expiry, while the debit limits the loss if the market falls.

The rationale combines a four-week low trendline that may provide support with reported improvement in Bitcoin ETF flows. The payoff is concentrated around the center strike, so the position is sensitive to both the expiry price and timing; a larger rally can reduce gains as the upper call offsets exposure. The article supplies a specific payoff and entry rationale, but no backtest or probability analysis, and its dated market signals do not establish that the setup remains relevant.

Key ideas

• A call butterfly buys calls at two outer strikes and sells twice as many calls at the middle strike.
• The structure is designed to profit most when BTC expires near the middle strike.
• The initial debit defines the maximum loss described in the example.
• A trendline and improving ETF flows are presented as possible support for a retracement.
• The payoff is localized around expiry and the middle strike, so outcomes depend on where BTC finishes.

Tags

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