Bitcoin ’Short Strangle’ Strategy Gains Traction as Markets Signal Near-Term Calm: 10x Research

Bitcoin traders are flipping the script—opting for sophisticated options plays that profit from sideways action.

The Strategy Shift

10x Research reports rising interest in short strangles as volatility expectations cool. This advanced tactic sells both call and put options, banking on Bitcoin staying within a specific range. It's a bold bet against big moves—and it's gaining followers fast.

Reading the Tea Leaves

Market indicators suggest a temporary lull in Bitcoin's notorious price swings. Traders aren't expecting fireworks—they're positioning for stability. Because nothing says 'calm markets' like complex derivatives that would give your average finance bro an aneurysm.

The Bottom Line

When crypto traders start acting like they've discovered patience, you know something's up. Either we've entered a new era of market maturity—or everyone's just tired of getting rekt on leverage.

Risk-reward profile

BTC needs to continue trading between $95,000 and $125,000 for the suggested strategy to generate profits. The rangebound trading will reduce the demand for OTM calls and puts, thereby draining premium from these options and generating a profit for strangle sellers.

Thielen’s previous recommendation from early August was also a short strangle, involving a $105,000 put and a $130,000 call. This strategy generated a yield of 3.5%.

Note, however, that short strangles carry significant risks, particularly in the event of a sudden spike in volatility, which can lead to substantial losses. Therefore, traders must continuously monitor the position and relevant market variables to manage risk effectively.