Bitcoin on your radar? Check out these BTC plays that analysts favor.

Bitcoin has surged to record highs above $126,000, kicking off October on a seasonally bullish note. Traders who missed the early rally may now feel FOMO—fear of missing out—and are looking for ways to participate while managing risk.

Bull Call Spreads
Markus Thielen, founder of 10x Research, recommends higher strike out-of-the-money (OTM) calls or bull call spreads.

“Buying 1–2 month OTM calls or spreads (e.g., $130,000/$145,000) lets traders capture upside without overpaying for implied volatility,” Thielen said.

A bull call spread involves buying a lower strike call and selling a higher strike call with the same expiration. While the sold call limits potential profit, it reduces upfront cost and caps maximum loss to the net premium paid, providing a balanced risk-reward approach.

Lin Chen, Deribit’s Asia Business Development Head, noted that block trades of call spreads are active: “Flows are dominated by large blocks of call spreads, both long-dated (Sep 2026) and short-dated monthly ones. Profit-taking is also visible.”

Financing Call Spreads with Puts
Greg Magadini, derivatives director at Amberdata, suggests selling lower strike OTM puts to fund multiple call spreads.

“This strategy minimizes volatility costs while capturing upside,” he said, cautioning that selling puts exposes traders to significant downside if BTC falls below the strike price.

Long-Term Strategy
For longer-term exposure, buying and holding BTC remains historically effective. Since 2011, BTC has climbed from $1 to over $120,000, underscoring its growth potential over time.