Been hearing some buzz about why Bitcoin's been stuck this year while other assets are rising. Apparently, big holders are selling call options to make some cash. Like, if I had 20,000 Bitcoin, I could sell covered calls on 10,000. If BTC stays under 100K, I get to keep my coins and pocket the premium.
Not shocked this thread isn't lighting up. But hey, today almost 24 billion in call options are expiring. This huge expiry could mean the pressure will lift when they go old-school. Just saying, though, new covered calls might pop up quickly, bringing the pressure back.
Interesting take on traders hitting profit targets and causing market dips. But gotta say, I don’t fully agree. The hype around 120K led many to sell and secure profits as they chased new targets. Once the sells hit hard, it was a mess.
This isn’t my theory but more like something I’ve been soaking in. Just wanted to toss my thoughts out there to see what others think. Not saying it's airtight or anything, just sharing what I've picked up.
Not sure this really blocks upward movement. If anything, it’s adding liquidity to the game. Puts and calls can balance things out, preventing wild swings in either direction.
Thanks for responding! New to this covered calls stuff, but sounds like you know your stuff. But I still think if many people sell these calls, it caps upside potential. Even if they aren't flooding the market directly, it could still push prices down.
I’m in the same boat as you. I’ve been digging into options myself. They’re key for managing Bitcoin’s wild swings, guess you get that. They basically create both upward and downward resistance.
So, could these covered calls really drop BTC from over 100K to 90K? Definitely think your theory has merit. But there’s also that shady stablecoin influence, plus some big market shifts tied to the whole Trump tariff situation.
Paper calls can't outweigh actual Bitcoin, right? No use behind BTC means the impact of options is more about short term vibes. Irony is, this could actually be bullish because it doesn’t create long-term supply.
Just so people know, BTCI is a fund that churns out income by selling covered calls on BTC. Personally, seems risky giving up upside for income. I prefer BALI for covered call income; it's safer to manage in my playbook.
You’ve kind of swayed my thoughts here. Those calls could've definitely had an impact. And yeah, there's some suspicious stuff going on. BTCI isn’t looking too hot right now, down 30% this year.
Right? They’re pushing huge yields while BTC's been sliding. I don't hold any, not saying to go for it, but income from those calls is enticing. For me, I'd stick to less aggressive plays and avoid that NAV drop.