Bitcoin 
$62,122The decrease in price fluctuations offers new opportunities to option sellers. In its daily analysis report published on October 9, Matrixport stated that they expected Bitcoin to remain between +/- 20 percent in any 30-day period last year and that large fluctuations would be rare. This insight offers option sellers the opportunity to collect additional premium and increase Bitcoin returns.
Future Prospects for the Bitcoin Options Market
matrixportAccording to ‘s analysis, this strategy encountered slight and temporary losses in only two short periods, at the end of the third quarter of 2023 and the first quarter of 2024. However, in general, by adhering to the expected volatility range option sellers provided extra income. Bitcoin’s price volatility has remained largely under control during this time, with no major price jumps or declines.
Now spot Bitcoin ETFVolatility is expected to decrease further with the launch of . This could make option selling a potentially profitable strategy in the coming months. For option sellers, lower volatility means collecting premium in a more stable market environment, which can increase the success of the strategy.
Why Does Option Selling Strategy Work?
Option selling strategy stands out as a way to generate additional income in market conditions where volatility remains low. Option sellers collect premiums if a certain price level is not exceeded, resulting in profits.
The prediction that Bitcoin will remain within 20 percent price movements in the last year is an important factor supporting this strategy. According to historical data, the market moved within the expected range, which was to the advantage of option sellers.
11 spots in the USA Bitcoin Volatility is expected to decrease further with the entry of the ETF into the market. This means less risk and the opportunity to make a more stable profit for option sellers. In the coming months, as volatility drops to even lower levels and price movements remain more controlled, option selling may become a more attractive option for investors.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
