Daily Bitcoin Options Selling Strategy — Step-by-Step 100 $ Premium Call and Put Selling
Strategy Name
Daily Bitcoin Short Strangle Using ~$100 Premium
1. Select the Expiry
Use the next day's Bitcoin options expiry.
The strategy is designed for daily-expiry options.
The original example uses Bitcoin; the speaker says a similar approach can be used for Ethereum.
2. Check the Option Chain in the Morning
Preferred time: approximately 7:00 AM–9:00 AM.
The reason given is that major movements may occur around the U.S. and Asian market sessions. The strategy therefore waits until the overnight/early-morning market activity has occurred before selecting the strikes.
3. Find the ~$100 Premium
Open the next day's Bitcoin option chain.
Look for:
One OTM Call with a premium close to $100
One OTM Put with a premium close to $100
The exact premium does not have to be exactly $100; the source uses examples around $105–$116.
4. Sell Both Options
Sell:
OTM Call + OTM Put
This creates a:
Short Strangle
The basic structure is:
Sell OTM Call
+
Sell OTM Put
The idea is that Bitcoin remains between the two selected strikes and both option premiums decay toward expiry.
5. Divide Your Capital Between Both Sides
The example in the source divides the capital equally:
50% for the Call side
50% for the Put side
Example:
₹20,000 total capital
→ ₹10,000 allocated to Call
→ ₹10,000 allocated to Put
The transcript then gives examples using different quantities/lots depending on the amount of capital.
6. Use a Defined Stop-Loss
This is a critical part of the strategy.
The source describes setting a stop-loss on both the Call and Put positions.
The example uses approximately:
Stop-loss = about 2× the premium received
For example:
Sell Call at $110
Stop-loss around $220
And:
Sell Put at $105
Stop-loss around $210
This is intended to limit the loss if Bitcoin makes a strong move.
7. Set a Take-Profit
The source uses approximately 95% premium decay as the take-profit target.
In other words, if most of the premium has disappeared, close the position rather than waiting unnecessarily for expiry.
Example
If an option was sold for $100:
95% decay → approximately $5 remaining
Close the position and book the premium decay profit.
8. Understand the Three Possible Outcomes
Scenario 1 — Bitcoin Stays Within the Range
This is the best-case scenario described by the strategy.
If Bitcoin does not make a sufficiently large move:
Call premium decays
Put premium decays
Both positions can become nearly worthless
You keep most of the premium received.
Result:
Profit on both sides.
Scenario 2 — Bitcoin Makes a Strong One-Sided Move
Suppose Bitcoin moves strongly upward.
Then:
Call side may hit its stop-loss
Put side may expire/close profitably
If Bitcoin instead moves strongly downward:
Put side may hit its stop-loss
Call side may remain profitable
The source describes this as approximately one side's loss being offset by the other side's profit, depending on the exact execution and price movement.
Result:
Potentially near breakeven, but this is not guaranteed.
Scenario 3 — Bitcoin Moves Violently in Both Directions
This is the worst-case scenario described.
For example:
Bitcoin moves sharply upward → Call SL triggered.
Bitcoin then reverses sharply downward → Put SL triggered.
Both sides can therefore hit their stop-losses.
Result:
Loss on both positions.
The source explicitly acknowledges that this scenario can happen.
Complete Strategy Checklist
Before the Trade
☐ Select next-day Bitcoin expiry
☐ Wait until approximately 7:00–9:00 AM
☐ Open the option chain
☐ Identify an OTM Call near $100 premium
☐ Identify an OTM Put near $100 premium
Entry
☐ Sell the selected Call
☐ Sell the selected Put
☐ Allocate capital between both positions
☐ Use a predefined position size
☐ Place stop-losses immediately
Risk Management
☐ Define the maximum loss before entering
☐ Do not increase the position after an SL
☐ Do not remove the SL because the market moves against you
☐ Avoid excessive leverage
Exit
☐ If premiums decay substantially → take profit
☐ If one side hits SL → manage/close according to the predefined rules
☐ If both sides hit SL → accept the predefined loss
☐ Do not hold simply hoping for recovery
Strategy in One Line
Next-day expiry → 7–9 AM → Find OTM Call & Put near $100 premium → Sell both → Set SL on both → Take profit after ~95% premium decay → Exit according to the predefined risk rules.
Strategy Structure
BTC Price
PUT SL ← SELL PUT ←──── BTC RANGE ────→ SELL CALL → CALL SL
The strategy profits primarily when Bitcoin remains inside the expected range until the options lose most of their value. The source calls this a Short Strangle. dailyoptionselling
Reviewed by Admin team
on
August 11, 2026
Rating:
