Using a Bitcoin Call Ratio Spread Around an Overhead Supply Zone

Summary

The article proposes a BTC call ratio spread for a sideways-to-bullish outlook. 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. The rationale is that Bitcoin had retraced after breaking a chart level, while an overhead supply area might slow a further rally. The stated maximum-profit point is at the short strike at expiry, below which the trade can retain value.

The example reports a small net debit and a maximum profit per BTC, but the position has net short call exposure. If BTC rises far enough above the short calls, losses can exceed the initial debit, so the payoff is not capped on the upside. The setup relies on a chart-based supply interpretation and a particular expiry and option pricing snapshot; the document provides no backtest or evidence that the level will hold. It also cautions against using the analysis as the sole basis for a trade.

Key ideas

• A call ratio spread buys one call and sells a larger number of higher-strike calls with the same expiry.
• The example is intended for a sideways-to-bullish BTC view near an overhead supply zone.
• The stated maximum profit occurs at the short strike at expiry.
• Net short call exposure means losses can exceed the initial debit if BTC rises substantially.

Tags

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