10x Research suggests a short strangle strategy for Bitcoin options trading in September, anticipating continued low volatility. This strategy involves selling out-of-the-money (OTM) call and put options, expecting that Bitcoin will trade between $95,000 and $125,000. Bitcoin maintained a range-bound trading pattern in August, defying predictions of significant volatility. The strategy is seen as advantageous because the implied volatility in options pricing is higher than realized volatility, allowing traders to maximize premium capture. Successful execution of this strategy hinges on Bitcoin remaining within the defined strike prices, as this would diminish the demand for OTM options and lead to profits for strangle sellers. However, caution is advised, as unexpected volatility spikes could result in substantial losses. The analyst emphasizes the importance of monitoring market conditions closely to mitigate risks.

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