- Bitcoin investors offered strategy for yield
- Covered strangle boosts returns in bull market
- Works best in markets with low volatility
10x Research, a financial firm known for its prescient market predictions, has proposed a strategy for Bitcoin investors seeking to augment their returns in the ongoing bull market. The firm recommends that Bitcoin holders consider implementing a “covered strangle” options strategy alongside their existing spot market holdings.
In essence, the covered strangle strategy involves selling an Out-of-The-Money (OTM) call option – a contract granting the buyer the right, but not the obligation, to purchase Bitcoin at a predetermined price (strike price) above the current market price – and an OTM put option – a contract granting the buyer the right, but not the obligation, to sell Bitcoin at a strike price below the current market price.
Crucially, this strategy generates additional income for investors through the premiums received for selling both the call and put options.
In a client note released on Monday, Markus Thielen, founder of 10x Research, outlined his firm’s preferred approach: buying Bitcoin spot, selling a …
The post The Secret Weapon for Bitcoin Investors in a Bull Run: Covered Strangle appeared first on Coin Edition.