Where crypto options actually trade
- Spot Bitcoin ETFs (IBIT and others): listed options on a fund that tracks the Bitcoin price — the closest way to trade Bitcoin options in a regular brokerage account.
- Crypto stocks: COIN (exchange) and MSTR (holds Bitcoin) often move more than Bitcoin itself, in both directions.
- Crypto-native venues (for example Deribit) list options on the coins themselves, but they are offshore and not available to most U.S. retail accounts.
1. Covered calls on IBIT or COIN — income while you hold
Own 100 shares and sell an out-of-the-money call. Crypto volatility makes the premiums large; the tradeoff is that a sharp rally gets called away at the strike.
2. Bear put spread — hedge a crypto drawdown
Buy a put and sell a lower-strike put. It costs less than a single put and protects a defined range, which helps because crypto can fall 20%+ in days.
3. Collar — protect a big gain
Own shares, buy a put below and sell a call above. The call helps pay for the put, setting a floor and a ceiling on your position.
4. Bull call spread — bullish with a capped cost
Buy a call and sell a higher strike. High IV makes single calls expensive; the sold call offsets part of the cost. Max loss is the debit paid.
Crypto-specific risks
- Crypto trades 24/7 but the options trade during market hours, so prices can gap at the open after a weekend move.
- MSTR and COIN carry company risk on top of crypto risk (debt, earnings, regulation).
- Very high IV means option buyers need a large move just to break even.
- Decide your maximum dollar loss before entering, and size small.