Yesterday, a massive number of options expired, setting a record, and prices fell accordingly.
The effects of the weekend and the rollover combined led to a certain price pullback.
However, from the perspective of volatility, long-term options are experiencing an increase, and traders' bullish sentiment remains relatively strong.
The Trump administration's crypto policy is friendly, and the future looks promising. Therefore, strategically, we can be more optimistic.
Tactically, we need to be cautious of pullback pressure and the impact of black swans. There is a high possibility of pausing interest rate cuts in January 2025, which could trigger a crash.
Therefore, selling covered calls at high points while buying double put options in deep out-of-the-money positions as insurance can effectively provide a safety net.
If you're afraid of missing out on significant gains, you can stealthily buy deep out-of-the-money bull spread call options in the long term.
Out-of-the-money options require a small investment but can achieve significant results. They are an excellent hedging tool.