10x Research Reaffirms Short Strangle Trade as Bitcoin Holds Range
Bitcoin (BTC) has continued to defy expectations of heightened volatility, holding a tight range through August. With the market showing few signs of breaking out, 10x Research is recommending the short strangle strategy for a second consecutive month.
The approach involves selling out-of-the-money puts and calls with the same expiry, effectively collecting premium while betting BTC remains rangebound. Markus Thielen, founder of 10x Research, said in a note that with BTC near $113,000, positioning between a $95,000 put and a $125,000 call for September offers favorable risk-reward. “Implied volatility remains above realized levels, suggesting options are overpriced and the market is unlikely to deliver outsized moves in the near term,” he noted.
Last month’s recommendation — a $105,000 put against a $130,000 call — returned 3.5%. The strategy relies on BTC staying between the strike prices, but Thielen cautioned that sudden volatility spikes could generate steep losses, underscoring the need for active risk management.
