Structuring a BTC Bull Put Spread Around Support

Summary

This trade note proposes a Bitcoin bull put spread for a market view in which price pauses or bounces near a support area. The structure sells a put at the higher strike and buys a put at a lower strike with the same expiry. The example uses June options with strikes at $60,000 and $58,000, collecting a stated net credit of $493 per BTC. The note describes maximum profit if Bitcoin expires at or above the short strike and caps the loss at the strike width less the credit.

The rationale combines a support zone near $60,000, a bearish preceding market structure, and elevated implied volatility at the short put strike. The author anticipates choppy trading if price does not break sharply from support. This is a directional, premium-collecting setup with limited but substantial downside if Bitcoin falls below the lower strike. The document offers a single illustrative trade and no backtest or evidence that the support level will hold; the stated prices and payoff depend on the market snapshot and option execution.

Key ideas

• A bull put spread sells a higher-strike put and buys a lower-strike put with the same expiry.
• The example seeks to profit if Bitcoin expires at or above the short put strike.
• The long put limits maximum loss to the strike difference minus the net credit received.
• The trade rationale relies on support and elevated implied volatility, neither of which guarantees a bounce.

Tags

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