10x Research Notes Growing Use of Bitcoin ‘Short Strangle’ as Volatility Expectations Ease

10x Research: Short Strangle Still the Go-To as Bitcoin Stays Rangebound

Bitcoin (BTC) continued to trade within a narrow band through August, frustrating expectations of heightened volatility. With market signals pointing to further stability, 10x Research again recommends the short strangle strategy for September.

Founder Markus Thielen said BTC’s current range — roughly $95,000 to $125,000 with spot around $113,000 — makes selling out-of-the-money puts near $95,000 alongside calls near $125,000 an attractive setup. “Options are still overpriced relative to realized volatility,” Thielen noted, adding that the implied volatility curve suggests “near-term calm.”

The short strangle, which involves writing both calls and puts, profits if BTC remains rangebound, as premiums decay. The firm’s August version of the trade generated a 3.5% yield.

Still, 10x cautioned that the strategy carries meaningful downside if volatility spikes unexpectedly, requiring close monitoring.