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Using a BTC Bear Call Spread for a Bearish-to-Sideways Outlook

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Summary

The article presents a bear call spread for traders expecting Bitcoin to remain bearish or move sideways. The example sells a May 2024 call at a $65,000 strike for $340 and buys a call at a $66,000 strike for $200, receiving a net credit of $140 per BTC. The position reaches its stated maximum profit if spot remains below the short strike at expiry; the higher-strike long call limits losses if Bitcoin rises. The article gives a maximum loss of $860 per BTC.

The bearish rationale combines Bitcoin’s lower highs and a failed breakout with claims that miners face lower post-halving revenues and transaction fees, potentially encouraging sales of their holdings. It also cites limited market response to ETF developments. These are the author’s market judgments, not evidence that miner selling or continued weakness will occur. The example is tied to a specific expiry and price context, provides no probability estimates or adjustment plan, and should not be treated as a general performance claim.

Key ideas

  • A bear call spread sells a call and buys a higher-strike call with the same expiry.
  • The example earns a net credit of $140 per BTC and has stated maximum loss of $860 per BTC.
  • The proposed position suits a bearish-to-sideways outlook, with profit conditional on Bitcoin remaining below the short strike at expiry.
  • The bearish thesis cites lower highs, a failed breakout, and pressure on miner revenues and fees.
  • The article offers a dated example rather than probability estimates or a plan for adjusting the position.

Tags

CryptoOptionsRisk management

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