BTC Call Ratio Spread for a Neutral to Slightly Bullish Outlook

Summary

The document presents a BTC call ratio spread for a neutral outlook with a slight short-term bullish bias. The example buys one out-of-the-money call at a lower strike and sells two calls at a higher strike, all with the same expiry. It identifies the higher strike as the target area, where the position reaches its stated maximum profit at expiry. The author’s rationale cites BTC retreating from a four-hour supply zone, an intact demand zone, unfavorable ETF flow data, and uncertainty about interest-rate policy.

The setup has limited initial cost, but selling more calls than are bought leaves the position exposed to losses if BTC rises far above the short strike. The article gives a specific trade example and describes how to place it through Deribit’s combo interface, but it provides no backtest, probability estimates, or broader performance evidence. Its market view and option prices are tied to the example’s stated date and conditions, so they should not be read as current market analysis. The author also cautions against using the report as the sole basis for a trading decision.

Key ideas

• A call ratio spread buys one call and sells multiple higher-strike calls with the same expiry.
• The example is intended for a sideways to mildly bullish BTC view.
• The spread’s stated maximum profit occurs at the short-call strike at expiry.
• The net short call exposure can produce losses beyond the initial debit if BTC rises sharply.

Tags

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