TDX Strategy outlines 'zero-cost' bullish BTC option strategy

A strategy for betting on a Bitcoin rally with nearly zero upfront cost is gaining attention in the options market. According to CoinDesk, quant trading firm TDX Strategy has proposed a "Bullish Risk Reversal" approach. The method involves selling an out-of-the-money (OTM) put option to collect a premium, which is then used to purchase an OTM call option. The outlet explained that this allows traders to bet on a BTC rally without significant initial investment. However, the strategy carries substantial risks. A trader who sells the OTM put is obligated to buy BTC at a price higher than market value if the price falls below the option's strike price. Furthermore, if the BTC rally is not strong enough, the call option could expire worthless. This structure effectively trades the lack of an initial cost for what could be virtually unlimited downside risk.