BTC Price; Markets; Bitcoin options; Open interestCointelegraph.com

This clever Bitcoin options strategy brings pro BTC traders big profits

Pro traders often use the front spread options strategy to generate hefty returns without having to pay for their positions upfront.
Bitcoin’s (BTC) upcoming March 26 options expiry might become the largest ever, with $6.1 billion open interest on the line. With less than 4 days ahead of the settlement date, pro investors will have already set up strategies for the next month.Bitcoin price at Coinbase, USD. Source: TradingViewAs BTC price has already surged 72.7% since February, most traders are skeptical of another rally taking place over the next couple of weeks. Nevertheless, the $55,000 support has shown strength and is a signal that the uptrend is intact.Whales and arbitrage desks are somehow optimistic, as reflected by the futures contracts premium and top traders’ long-to-short ratio. The excitement seems more restrained as opposed to mid-March, when the futures premium reached 35% annualized.OKEx 3-month future contracts basis. Source: SkewOptions strategies do not face liquidations ahead of expiryOptions strategies provide excellent opportunities for traders who have a fixed-range target for an asset. Using leveraged futures contracts also allows traders to leverage the position, although the stop loss decreases the trade’s viability.On the other hand, a trader can create a slightly bullish strategy using multiple put (sell) options. The front spread with puts allows gains with no upfront cost other than the margin requirements for a negative price swing. The same pattern can be used in both bullish and bearish circumstances, depending on the investor’s expectations.It’s important to remember that options have a set …
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