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Using a Bull Call Spread to Trade a Bitcoin Rebound

Article Deribit Insights
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Summary

The document presents a bullish Bitcoin options trade based on signs of recovery on the four-hour chart and a Drop-Base-Rally pattern on the daily chart. It identifies support near $58,500 and cites a prior move from the demand zone toward $72,000 as context for expecting a rebound. The proposed position buys a June 27, 2024 call at a $62,500 strike and sells a same-expiry call at $63,500, collecting a net debit of $140 per BTC.

The spread has capped upside: the stated maximum profit is $860 per BTC if Bitcoin is at or above $63,500 at expiry. If the market falls, the loss is limited to the initial debit. The setup is conditional on the support zone holding and is framed as an example rather than a general forecast. The document offers chart-based reasoning but no backtest or probability estimate, and it cautions against using the analysis as the sole basis for a trading decision.

Key ideas

  • A bull call spread buys a lower-strike call and sells a higher-strike call with the same expiry.
  • The proposed Bitcoin trade uses $62,500 and $63,500 strikes expiring June 27, 2024.
  • The stated maximum loss is limited to the $140 per BTC net debit.
  • Maximum profit is capped at $860 per BTC if Bitcoin reaches at least $63,500 at expiry.
  • The bullish thesis depends on support near $58,500 and a daily Drop-Base-Rally pattern holding.

Tags

CryptoOptionsDerivatives pricingRisk management

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