Bitcoin trading: Quant firm suggests a bullish BTC strategy with a key financing twist
TDX Strategies proposes a bullish Bitcoin risk reversal trade funded by selling put options to buy calls, minimizing upfront cost.Summary
The Hong Kong-based quant firm TDX Strategies is recommending a "bullish risk reversal" strategy for Bitcoin, designed to build upside exposure for March and April while significantly offsetting the cost.
This strategy involves selling out-of-the-money (OTM) put options, collecting the premium, and using that income to purchase OTM call options. This structure is cheaper than simply buying calls outright, allowing traders to remain exposed to a Bitcoin rally with little to no upfront payment.
However, the trade carries risks: selling the puts obligates the trader to buy Bitcoin at the strike price if the market crashes below it, and the OTM calls may expire worthless if the rally is insufficient. Consequently, the payoff is asymmetric, featuring limited upside above the call strike and meaningful downside exposure below the put strike, requiring close monitoring.
(Source：CoinDesk)