Bitcoin's 9-Month Slide Spurs Strategy Bear Call Spread
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- Strategy (MSTR) is the subject of a recommended bear call spread: sell $87 call, buy $90 call (August 7th weekly), collecting $1.50 net credit with both max profit and max loss set at $1.50 on an $86.93 reference price
- Bitcoin is in a nearly 9-month slide, with EMA, WMA, MACD, and DMI technical indicators all leaning decidedly short, the article states
- The piece notes Bitcoin's five worst historical drawdowns saw four exceed 80%, a magnitude that would drag the asset back into the $22,000 neighborhood
- Gold, silver, and aluminum are breaking down in parallel — both precious metals cracked below their long-term moving averages and aluminum just crossed below its 200-day MA, while copper has held — a cross-asset signal the trade-idea framing largely glosses over
- The author's top-performing option income fund deployed structurally bearish directional positioning against MicroStrategy (MSTR) over the past year, harvesting rich premiums from the same setup
- iShares Bitcoin Trust (IBIT) is offered as an alternative vehicle, letting retail investors replicate the defined-risk bearish tilt via out-of-the-money upside call spreads on either IBIT or MSTR
Why it matters: Defined-risk options sellers collect $1.50 per spread betting Strategy (MSTR) stays below $87 by August 7th, with losses capped at $1.50 if shares blow past $90. For retail traders exposed to Bitcoin via MSTR or IBIT, this converts a directional bet on further weakness into a premium-income trade with strictly bounded downside.
