Bitcoin (BTC) has started October with impressive momentum, surging to unprecedented levels above $126,000. Traders who missed the initial uptrend may be experiencing FOMO (fear of missing out). For those looking to enter the market strategically, here are several bullish BTC options approaches favored by financial experts.
Call Spread Strategy
Markus Thielen, founder of 10x Research, recommends purchasing out-of-the-money (OTM) calls or implementing call spreads. "Acquiring 1-2 month OTM calls or call spreads (such as $130,000/$145,000) enables traders to benefit from further price appreciation without overpaying for implied volatility," Thielen explained in a recent client update.
A call option provides the right to buy the underlying asset at a predetermined price before expiration, representing a bullish market outlook. A bull call spread involves buying a lower strike call while simultaneously selling a higher strike call with identical expiration dates, similar to the $130,000/$140,000 spread Thielen suggested.
This approach caps potential profits but significantly reduces entry costs. Crucially, it limits maximum losses to the net premium paid if markets decline unexpectedly, making it ideal for risk-conscious traders seeking balanced exposure.
While BTC is projected to continue its year-end rally, sudden corrections from profit-taking remain possible. Lin Chen, Deribit's Asia Business Development Head, noted significant call spread activity via block trades, including both long-term (September 2026) and short-term monthly positions, alongside substantial profit-taking activity.
Put-Financed Call Spreads
Greg Magadini, Amberdata's derivatives director, suggests another cost-effective method: financing bull call spreads by writing lower strike OTM put options. "Selling OTM puts to fund multiple call spreads, rather than direct OTM call purchases, helps minimize volatility costs while maintaining upside potential," Magadini stated.
This strategy carries important risk considerations. Selling put options obligates you to purchase BTC at the strike price if markets decline below that level, creating substantial downside exposure that could exceed initial premiums received.
Magadini also observed that BTC calls, particularly longer-dated contracts, generally trade cheaper than put options. For long-term investors, historical data shows that straightforward BTC acquisition and holding has delivered exceptional returns, with prices soaring from $1 to over $120,000 since 2011.