As Bitcoin’s market evolves, 10X Research is shaking things up with a bold new proposal, offering investors a pathway to greater returns. Renowned for its spot-on predictions, 10X Research is advocating for the adoption of the “covered strangle” options strategy, a move aimed at boosting income for Bitcoin holders.
But what exactly does this strategy involve, and what does it mean for investors?
10X Research’s Winning Formula
The covered strangle strategy involves selling a call option, which provides protection against price rallies, and selling a put option, which acts as insurance against downtrends. This approach allows investors to earn premiums from both options, increasing their overall yield.
Leading the charge is Markus Thielen, the brains behind 10X Research. Thielen recommends a tactical move: selling a call option with a hefty $100,000 strike price—set 50% above Bitcoin’s current rate—paired with a put option at a $50,000 strike price. Both options are slated to mature by December 2024, aligning with a vision for long-term gains.
With this strategy, investors stand to gain a solid 17% buffer against downside risks or an equivalent boost in yield, depending on Bitcoin’s performance by December. Tailored for bullish market sentiments, where gradual upticks are expected, this approach thrives on low implied volatility—a recipe for steady growth
Manage Your Risks!
However, amid the promise of prosperity, lurk significant risks. If Bitcoin plunges below the $50,000 put option strike price, both the long Bitcoin position and the short put position face exposure, potentially amplifying losses compared to conventional covered call strategies.
Bitcoin Market Analysis
Presently, Bitcoin hovers around $66,890, showing a slight decline. Nonetheless, Bitcoin’s trading volume has surged by 48%, hitting $23 billion, underscoring its robust market presence, with a formidable market cap standing at $1.31 trillion.
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