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Using a BTC Bull Put Spread to Express a Bullish View

Article Deribit Insights
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Summary

This trade note explains a bull put spread as a defined-risk way to express a bullish BTC view. The example sells one May 31 $65,000 put and buys one $64,000 put, collecting a stated net credit of $261 per BTC. The author links the thesis to the confirmed approval of spot Ether ETFs and consecutive days of net inflows into U.S. spot Bitcoin ETFs, including a cited inflow figure for one Thursday. The proposed target is for BTC to remain above $65,000 at expiry.

At or above the short strike on May 31, the trade earns its maximum stated profit of $261 per BTC. The long lower-strike put limits downside, and the note states a maximum loss of $739 per BTC, equal to the $1,000 strike difference less the credit. The market argument is based on contemporaneous sentiment and ETF flows; it is not supported by backtesting or a broader sample. The note presents an illustrative trade and explicitly says it should not be the sole basis for a trading decision.

Key ideas

  • A bull put spread sells a higher-strike put and buys a lower-strike put with the same expiry.
  • The example collects a stated $261 per BTC credit using $65,000 and $64,000 strikes.
  • Maximum profit occurs if BTC is at or above $65,000 at expiry.
  • The lower-strike long put caps the stated maximum loss at $739 per BTC.
  • The bullish rationale relies on ETF approval and flow observations rather than tested performance evidence.

Tags

CryptoOptionsRisk managementEvent-drivenSentiment

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