Bitcoin has surged to fresh all-time highs above $126,000, kicking off October in line with the cryptocurrency’s historically bullish seasonal trend. Traders who missed the initial rally may now be feeling the classic FOMO—fear of missing out—and looking for strategies to participate safely.
Analysts suggest several BTC option plays that allow traders to ride the upward momentum while managing risk.
Call Spreads: Balanced Bullish Exposure
Markus Thielen, founder of 10x Research, recommends using higher strike out-of-the-money (OTM) calls or bull call spreads.
“Buying 1–2 month OTM calls or call spreads, for instance $130,000/$145,000, lets traders capture potential upside without overpaying for implied volatility,” Thielen noted.
A call option gives the holder the right—but not the obligation—to purchase BTC at a set price before expiration, effectively signaling a bullish stance. In a bull call spread, traders buy a lower strike call and simultaneously sell a higher strike call with the same expiration. While the sold call caps maximum profit, it also reduces the upfront cost and limits potential losses to the net premium paid, making it suitable for traders balancing risk and reward.
Deribit’s Asia Business Development Head, Lin Chen, confirmed that block trades of call spreads are active. “Flows are dominated by large blocks of call spreads, both very long-dated (Sep 2026) and short-dated monthly ones. Profit-taking is also visible,” Chen said.
Financing Call Spreads with Puts
Greg Magadini, director of derivatives at Amberdata, suggests another strategy: funding bull call spreads by selling lower strike OTM put options.
“Selling OTM puts and using the proceeds to buy multiple call spreads can reduce term structure volatility costs while still capturing upside,” Magadini explained.
Traders must note the additional risk: selling puts obligates the seller to purchase BTC at the strike price if the market falls, potentially exposing them to significant downside. While the call spread caps losses, the short put leg can generate exposure exceeding the initial premium received.
Long-Term BTC Exposure Remains Key
For investors aiming to hold over a longer horizon, simply buying and holding BTC remains historically the most rewarding approach. Since 2011, BTC has surged from $1 to over $120,000, illustrating the cryptocurrency’s long-term growth potential.
