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Recently, the Bitcoin trend has reasons for both bullish and bearish, and it can be quite unstable if trading contracts. However, Bitcoin cannot keep going sideways like this. If you cannot determine the direction, you can try using options combinations. Regardless of bullish or bearish, you can first profit from the fluctuations.
The leveraged strategy, simply put, is a trading strategy constructed by simultaneously buying call options and put options with different strike prices. (It's better not to use straddles, as they have relatively high costs.)
Note: The strike price of call options in a Lattice strategy combination should be higher than the current price, while the strike price of put options should be lower than the current price.
For example, in the image below, the strike price for the call Options is 10900 yuan, expiring on June 25, while the strike price for the put Options is 10400 yuan, also expiring on June 25.
The cost of this strategy is limited (total cost = call option premium + put option premium), and the maximum loss is also the premium paid for the Call + the premium paid for the Put.
The upper breakeven point is the strike price + total premium, and the lower breakeven point is the strike price - total premium.
When the price of Bitcoin breaks through the breakeven point, the Leverage Combination Strategy will be profitable. Theoretically, the potential upside gains are unlimited, but you can also choose to close the position early at any time within the profit range.
In summary, the Leverage Strategy Portfolio is used when predicting that there will be significant fluctuations in the future, but the direction is uncertain. This method has a higher success rate compared to a single direction.