Bitcoin News Today: Bitcoin's Rally Sparks Strategic Bets as Traders Hedge Volatility with Precision Spreads

Bitcoin's recent surge to record highs has reignited investor interest in bullish options strategies, with analysts highlighting structured approaches to capitalize on the asset's momentum while managing risk. As of October 2025, Bitcoin (BTC) traded near $123,858, setting the stage for tactical positions such as call spreads and covered call strategies. These strategies aim to balance potential gains with controlled exposure, particularly amid seasonal volatility and the likelihood of profit-taking correctionstitle7^[3].

One favored approach is the bull call spread, where traders buy out-of-the-money (OTM) calls at a lower strike price and sell higher strike calls to offset costs. Markus Thielen of 10x Research recommends spreads like $130,000/$145,000, allowing participation in upside movement without overpaying for volatility. This strategy limits maximum loss to the net premium paid, offering a risk-defined structure for those anticipating further price appreciation. Deribit's Asia Business Development Head Lin Chen noted increased block trading in long-dated (e.g., Sep 2026) and short-dated call spreads, underscoring institutional activitytitle7^[3].

To further reduce capital outlay, traders are financing bull call spreads by selling OTM put options, as advised by Greg Magadini of Amberdata. This covered call strategy generates income from the put premium to fund multiple call spreads, effectively lowering the cost of bullish exposure. However, it introduces downside risk, as selling puts obligates the trader to buy BTC at the strike price if the market declines sharply. Magadini emphasized that BTC calls, particularly long-dated ones, remain cheaper than puts, making this approach cost-effective for those confident in the asset's trajectorytitle7^[3].

The market structure for BTC options is evolving, with U.S.-listed products like BlackRock's iShares Bitcoin Trust (IBIT) and CBOE's ETF-linked options gaining traction. IBIT options, launched in November 2024, now hold $38 billion in open interest, surpassing Deribit's $32 billion, according to Bloomberg. Unlike Deribit's direct BTC-linked options, IBIT and CBOE products track ETFs or baskets of ETFs, requiring strike price conversions to reflect BTC prices. For instance, a $62 strike on IBIT (trading at $56) implies a BTC price of ~$110,000.

Deribit retains a 80% global market share in BTC options, offering 24/7 trading and BTC-as-collateral advantages. However, U.S. regulators limit its accessibility, pushing domestic traders to IBIT and CBOE. Deribit's European-style options (exercisable only at expiration) are cheaper than American-style options, appealing to cost-conscious traders. Meanwhile, CBOE's European-style options, linked to a modified market cap-weighted ETF index, lack fungibility, restricting liquidity compared to U.S. fungible options managed by the OCC.

Risks remain inherent in these strategies. While bull spreads cap losses, sudden corrections could erode gains. The call ratio spread-a variant of the bull call spread-amplifies risk by selling two higher-strike calls for every long call, creating net short exposure. This strategy, recommended by Deribit Insights, targets BTC's potential rally toward $74,000 but exposes traders to losses if the price stagnates or declines. Analysts caution that political and macroeconomic uncertainties, including U.S. election dynamics, could introduce volatility.

The shift toward U.S.-listed BTC options reflects broader regulatory alignment and institutional adoption. BlackRock's IBIT, now the largest Bitcoin ETF with $84 billion in assets, benefits from a self-reinforcing cycle: increased options liquidity attracts capital, deepening the market. Despite this, Deribit's dominance in offshore trading persists, catering to crypto-native traders seeking flexibility and efficiency.