Using a Bitcoin Call Ratio Spread for a Potential Triangle Breakout

Summary

This trade idea pairs a bullish technical view with a defined options structure. The author points to six consecutive days of net inflows into spot Bitcoin ETFs, including $64.8 million on Thursday, and an hourly chart described as an ascending triangle with higher highs and higher lows. The anticipated move is toward resistance near $65,000, though the chart pattern is presented as a possibility rather than confirmation of a breakout.

The proposed call ratio spread buys one out-of-the-money $63,000 call and sells two $65,000 calls with the same August 30 expiry. The stated net credit is $31 per BTC, with maximum profit of $2,031 per BTC if BTC settles at $65,000 at expiry. The extra short call creates net short call exposure, so losses can become significant if the price rises beyond the upper strike. The article gives a specific example and payoff rationale, but no probability estimates, scenario table, volatility assumptions, or backtest; the levels and trade terms are tied to that dated market setup.

Key ideas

• The bullish thesis combines spot ETF inflows with an ascending triangle and higher highs and lows on the hourly chart.
• The proposed spread buys one $63,000 call and sells two $65,000 calls for the same expiry.
• The article states a $31 per BTC net credit and maximum profit of $2,031 per BTC at a $65,000 expiry price.
• The position has net short call exposure, creating the possibility of significant losses above the sold strike.
• The setup is a dated trade example without probability estimates or backtest evidence.

Tags

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