BTC Call Ratio Spreads for a Rally Toward Resistance

Summary

This trade note proposes a BTC call ratio spread based on a bullish market view and the possibility of a rally toward resistance near $74,000. The structure buys one May 31 call at a $72,000 strike and sells two calls at $74,000, for a stated net debit of $76 per BTC. The note says the position reaches its maximum profit of $1,924 per BTC if BTC is at $74,000 at expiration.

The rationale combines reported spot Bitcoin ETF inflows and political support with a technical reading: BTC had pulled back after approaching $71,970, held above a demand area near $67,055, and might retest higher levels. The proposed target is below $74,000, though the payoff description identifies that level as the maximum-profit point. The analysis is a dated market view, not a tested forecast, and the article provides no backtest or probability estimates. Because selling two calls creates net short call exposure, losses can exceed the initial debit if BTC rises sufficiently above the upper strike.

Key ideas

• A call ratio spread buys one lower-strike call and sells two higher-strike calls with the same expiry.
• The example uses a $72,000 long call and two $74,000 short calls expiring May 31.
• The stated maximum profit is $1,924 per BTC if BTC finishes at $74,000.
• The initial debit is $76 per BTC, but losses can exceed it because the position is net short calls.
• The bullish rationale relies on ETF inflows, political sentiment, and a technical rebound from a demand zone.

Tags

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