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Using a BTC Call Ratio Spread for a Moderately Bullish Target

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Summary

This trade note describes a short-dated, moderately bullish BTC options position built around a potential advance toward $70,000. It proposes selling one March 8 $68,500 call and buying one March 8 $70,000 call. The author’s rationale is that BTC had retreated briefly from a swing high near $69,000 and recovered to about $67,700, suggesting a measured rise rather than another rapid rally. The $70,000 level is also presented as a possible pause point because of substantial open interest.

The note states a maximum profit of $1,470 per BTC and a maximum debit of $30 per BTC, with losses limited to that debit if the market falls. It also warns that a sharp volatility-driven rally is unfavorable because the position has net short call exposure. The author would consider closing if BTC reached $70,700 within four hours. This is a specific, time-sensitive trade idea, not a tested strategy; the note gives no broader performance evidence and disclaims being trading advice.

Key ideas

  • The position sells a lower-strike call and buys a higher-strike call with the same expiry.
  • The trade expresses a moderately bullish view, with the short strike near the anticipated price target.
  • The stated maximum profit is $1,470 per BTC, while the initial debit caps losses if BTC falls.
  • A fast rally accompanied by higher volatility can hurt because the position has net short call exposure.
  • The suggested review trigger is a BTC price of $70,700 within four hours.

Tags

CryptoOptionsVolatilityPosition sizing

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