Riding the Bull: Crafting a Winning Call Spread Strategy in BTC

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If you maintain an optimistic perspective regarding BTC, here’s a trading idea customized for the current market environment.

Call Spread

The proposed strategy is a Bull Call Spread. A bull call spread consists of one long call with a lower strike price and one short call with a higher strike price of the same expiration date.

You might consider initiating this trade if you believe that BTC has short-term upward potential to reach $75,000 or higher.

Trade Structure

(OTM Call) Buy 1x BTC-30MAR24-$74,000-C @ $260(OTM Call) Sell 1x BTC-30MAR24-$75,000-C @ $160

Target: Spot level > $75,000

Payouts

Maximum Profit: $900/BTCDebit of Strategy: $100/BTC

Why are we taking this trade?

BTC has displayed no significant indications of retracement or breaches of support or demand zones, maintaining its proximity to all-time highs. With expectations of continued upward momentum, I predict BTC will climb to unprecedented levels in the near future, potentially surpassing $75,000.

To capitalize on this potential surge, the call spread strategy emerges as an attractive option. Traders looking to capitalize on this bullish momentum over the next few days might want to consider implementing a call spread strategy for potential short-term profits.

To implement this strategy, traders can buy a higher strike call option (e.g., $74,000) and simultaneously sell calls option of a higher strike price (e.g., $75,000).

Should there be a market downturn, the downside risk is confined to the initial debit of $100.

How to take this trade on Deribit?

Step 1: Go to Combo books under the Strategy tab Create combo.

Step 2: Click RFQ and send your order to the Combo List.

Step 3: Go to Combo list (BTC), click on your Strategy and execute.