Yesterday, a massive amount of options expired, setting a historical record, and prices also fell accordingly.
The combined effect of the weekend and the rollover led to a certain pullback in prices.
However, looking at the volatility, long-term options are rising, and traders' bullish sentiment remains relatively strong.
The Trump administration's cryptocurrency policy is friendly, and the future looks promising. Therefore, strategically, one can be more optimistic.
Tactically, one needs to be cautious of pullback pressure and the impact of black swan events. The possibility of pausing interest rate cuts in January 2025 is high, which could trigger a sharp decline.
Therefore, selling covered calls on rallies while buying double put options at 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 buy deep out-of-the-money call spread options in the long term.
Out-of-the-money options, spending a little money to achieve big things. They are a very good hedging tool.