MatrixportIn a report published on September 24, Bitcoin $63,729He noted that despite being a volatile asset by nature, the price movements of the 30-day return rates in the last 18 months have generally remained within a 20 percent band. This confirms the crypto analysis company’s recommendation of option sales strategies at the beginning of 2023, which predicts that volatility will decrease further. Matrixport emphasized the opportunity to provide investors with additional income, especially with the sale of out-of-the-money put and call options.
Additional Earnings Opportunity with Option Sales
According to Matrixport’s report Bitcoin‘s price movements are largely within a narrow range. While this trend is expected to continue, it was stated that investors who want to make more profit can benefit from this situation, especially with out-of-the-money option sales. The sale of out-of-the-money put and call options provides investors with additional income if Bitcoin does not exceed a certain price level.
However, it was also stated in the report that this strategy may cause losses from time to time. However, the downward trend in general volatility offers an opportunity to compensate for these losses in the long term. Matrixport, this strategy is particularly Bitcoin volatilityHe believes that it will yield successful results as long as the downward trend in the stock market continues.
More Institutional Participation Expected with Spot Bitcoin ETFs
The report also states: Spot Bitcoin ETFHe predicts that more institutional investors will enter the market after the launch of options tied to their , further compressing volatility. This could increase the effectiveness of existing options strategies and expand opportunities for Bitcoin investors to earn additional income.
Matrixport says Bitcoin investors can continue to earn additional income by selling volatility, and that this strategy is viable in the future. Increasing institutional participation and Spot ETFWith the entry of options into the market, volatility is expected to decrease further and, accordingly, option selling strategies are expected to become more attractive.
In this context, Matrixport’s option selling strategy proposal stands out as an effective way for Bitcoin investors to generate income from volatility.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
