Skip to content
All library documents

Using a Bear Call Spread for a Sideways or Bearish Bitcoin View

Article Deribit Insights
Read the original

Summary

The article presents a bear call spread for a trader expecting Bitcoin to remain sideways or decline over the near term. The example sells a call at a lower strike and buys another call at a higher strike with the same expiration. The stated setup uses April 26 options, with strikes at $69,000 and $70,000, and receives a net credit of $160 per BTC. The article gives a target of spot below $70,000 and reports maximum profit of $160 per BTC and maximum loss of $840.

The rationale is subdued market response to the halving and ETF-related developments, resistance after prior support breaks, and open interest concentrated at the $70,000 strike. These observations support the author’s bearish-to-neutral thesis, but the article provides no backtest or evidence that the setup is profitable across market conditions. It also contains an apparent arithmetic wording error in its loss formula, so the stated maximum loss is the clearer risk figure. The trade example is specific to its dated expiry and market context, not a general forecast.

Key ideas

  • A bear call spread sells a call and buys a higher-strike call with the same expiration.
  • The example collects a net credit of $160 per BTC and targets a Bitcoin price below $70,000.
  • The stated maximum loss is $840 per BTC, limiting risk if Bitcoin rises sharply.
  • The bearish-to-neutral rationale cites muted event reactions, technical resistance, and strike-level open interest.
  • The article offers a dated example rather than backtested evidence of strategy performance.

Tags

CryptoOptionsRisk managementDerivatives pricing

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