Bitcoin Experts Favor Call Spreads for Next Leg Higher in Prices

Bitcoin experts recommend using call spreads for a defined-risk strategy to profit from an expected price rise while capping potential losses. Call spreads involve buying the right to purchase BTC at a given price, such as $80,000, and simultaneously selling the right for someone else to buy it at a higher price, say $90,000.

The maximum profit from this strategy is the difference between the two strike prices minus what the call spread buyer paid for the spread. The maximum loss is limited to the initial premium.

Industry experts believe that put options remain relatively expensive and that long call spreads allow traders to buy the cheaper wing of a skew leading toward downside puts, capturing potential post-expiry upside while maintaining defined risk ahead of Fed and inflation catalysts.