Secret

Bitcoin

Coin

<ul class="news-points">
 <li>Bitcoin investors offered strategy for yield</li>
 <li>Covered strangle boosts returns in bull market</li>
 <li>Works best in markets with low volatility</li>
</ul>
10x Research, a financial firm known for its prescient market predictions, has <a href="https://www.coindesk.com/markets/2024/05/20/research-firm-favors-bitcoin-covered-strangle-strategy-to-enhance-portfolio-yield-by-17/" target="_blank" rel="noopener noreferrer nofollow">proposed a strategy</a> for Bitcoin investors seeking to augment their returns in the ongoing bull market. The firm recommends that Bitcoin holders consider implementing a “<a href="https://finance.yahoo.com/news/research-firm-favors-bitcoin-covered-063351572.html#:~:text=The%20'covered%20strangle'%20strategy%20involves,below%20the%20underlying's%20spot%20market" target="_blank" rel="noopener noreferrer nofollow">covered strangle</a>” options strategy alongside their existing spot market holdings.
In essence, the covered strangle strategy involves selling an Out-of-The-Money (OTM) call option – a contract granting the buyer the right, but not the obligation, to purchase Bitcoin at a predetermined price (strike price) above the current market price – and an OTM put option – a contract granting the buyer the right, but not the obligation, to sell Bitcoin at a strike price below the current market price.
Crucially, this strategy generates additional income for investors through the premiums received for selling both the call and put options.
In a client note released on Monday, Markus Thielen, founder of 10x Research, outlined his firm’s preferred approach: buying Bitcoin spot, selling a …
The post <a href="https://coinedition.com/the-secret-weapon-for-bitcoin-investors-in-a-bull-run-covered-strangle/" rel="noopener noreferrer nofollow">The Secret Weapon for Bitcoin Investors in a Bull Run: Covered Strangle</a> appeared first on <a href="https://coinedition.com" rel="noopener noreferrer nofollow">Coin Edition</a>.

The Secret Weapon for Bitcoin Investors in a Bull Run: Covered Strangle

Coin Edition

Other articles published on May 20, 2024

Gold and Silver Surge to Record Highs: Is Bitcoin Next in Line?

Grayscale Appoints Peter Mintzberg As The New CEO

As NEAR Protocol (NEAR) Gains, Watch This Sleeper Project Poised for a Breakout

Prometheum Sets Precedent with SEC-Compliant Ethereum Custody Service Launch

Bitcoin Finally Catches Its Breath! But Everything Could Change…

Spot Ethereum ETF Decision Looms as SEC’s Deadline Draws Near

Join our free newsletter for daily crypto updates!