I have been trading crypto since 2017 and have done quite well. But at the moment I have some Bitcoin that has a negative unrealized loss. I have been considering long term BITO call options to maintain my current exposure to Bitcoin price while freeing up cash to spend, diversify into other assets, or double down on crypto.
Today I sold a total of $8,827.89 worth of Bitcoin and bought $3,950 worth of 6/20/2025 call options on BITO. I have 7 contracts and control 700 shares of BITO. Below are some estimates of how much cash I freed up and managed to keep roughly the same Bitcoin price exposure should it climb. I have reduced my max loss, but increased the chance of loss if Bitcoin stays where it is or drops. However, this frees up cash to fund our HSA, take a trip, or do something else with it. Per the table below I have freed up about $5,424 with the downside that I have borrowing costs essentially. But I probably couldn’t go get a loan for decent price for this and I prefer to enter positions where I know the max loss and am comfortable with it.
| Item | Strike | Expiration | Contracts | Cost | BITO Price Now * Share | Underlying at Open | Underlying Price | Break Even Price | Break Even Move | Time Value | Time Value Annualized Cost |
| BITO Call | 10 | 6/20/2025 | 3 | $1,455.00 | $4,017.00 | $13.39 | $13.34 | $14.85 | 10.90% | $438.00 | 10.90% |
| BITO Call | 9 | 6/20/2025 | 2 | $1,040.00 | $2,678.00 | $13.39 | $13.34 | $14.20 | 6.05% | $162.00 | 6.05% |
| BITO Call | 7 | 6/20/2025 | 1 | $680.00 | $1,339.00 | $13.39 | $13.34 | $13.80 | 3.06% | $41.00 | 3.06% |
| BITO Call | 6 | 6/20/2025 | 1 | $775.00 | $1,340.00 | $13.40 | $13.34 | $13.75 | 2.61% | $35.00 | 2.61% |
| Total | $3,950.00 | $9,374.00 |
Correction for Same DaY
I decided to sell a little more so I would have enough cash on hand to max out our HSA for the year. Unfortunately I made a mistake and instead of entering a buy order I entered a sell order for two contracts of the $9 call for $900. I meant to buy. So then that left me with a position of 0 contracts for the $9 strike. So I went an bought four for the price of $2,060. That was a little frustrating, but now I have a spare $5,000 free to deposit to our HSA which will help me max it out in combination with the employer contribution. In the table I just do the math to ignore the sale and include its drag on the purchase of 2 additional contracts.
| Item | Strike | Expiration | Contracts | Cost | BITO Price * Share | Underlying at Open | Underlying Price | Break Even Price | Break Even Move | Time Value | Time Value Annualized Cost |
| BITO Call | 10 | 6/20/2025 | 3 | $1,455.00 | $4,017.00 | $13.39 | $13.30 | $14.85 | 10.90% | $438.00 | 10.90% |
| BITO Call | 9 | 6/20/2025 | 2 | $1,040.00 | $2,678.00 | $13.39 | $13.30 | $14.20 | 6.05% | $162.00 | 6.05% |
| BITO Call | 7 | 6/20/2025 | 1 | $680.00 | $1,339.00 | $13.39 | $13.30 | $13.80 | 3.06% | $41.00 | 3.06% |
| BITO Call | 6 | 6/20/2025 | 1 | $775.00 | $1,340.00 | $13.40 | $13.30 | $13.75 | 2.61% | $35.00 | 2.61% |
| BITO Call | 9 | 6/20/2025 | 2 | $1,160.00 | $2,660.00 | $13.30 | $13.30 | $14.80 | 11.28% | $300.00 | 11.28% |
| Total | $5,110.00 | $12,034.00 |
Disclaimer
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