To The Moon

$IBIT 20250228 71.0 CALL$ 

Profiting from High Volatility: Using Covered Calls on IBIT

Bitcoin’s high volatility provides plenty of opportunities for traders to profit, and I’ve leveraged this volatility through a covered call strategy on IBIT. By holding 100 shares of the ETF, I can sell call options during price spikes and buy them back at a lower price when the volatility subsides. This way, I collect premiums quickly, turning price movements into profits.

My Recent Trade

On January 22, I sold an IBIT call option at a strike price of $71, earning a premium of $1.53 per share. Given Bitcoin’s recent price action, I anticipated the price to fluctuate but stay below the $71 resistance level. Within hours, volatility caused the call option’s premium to drop, allowing me to buy back the same call for $1.31. This quick move earned me $0.22 per share in a single day. For 1 lot (100 shares), that’s $22 profit—enough to cover a meal or reinvest into my portfolio.

Why This Strategy Works in a Volatile Market

High volatility in Bitcoin creates frequent price swings, which directly impact the premiums of call options. By selling calls during a price spike and buying them back when premiums decrease, I can consistently lock in small gains. This strategy works best when the underlying asset (IBIT) is expected to remain below the strike price, limiting the risk of assignment.

The key is to monitor the market closely and act quickly. Selling options at high premiums ensures maximum returns, while buying them back at lower prices reduces risk and locks in profits.

Building Steady Profits

Using this approach during volatile periods, I can earn consistent returns on my IBIT holdings. It’s a simple yet effective way to turn Bitcoin’s unpredictable movements into steady income while holding onto the ETF long-term.

@MillionaireTiger 

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@CaptainTiger 

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