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

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