10x Research: Recommends selling out-of-the-money call and put options related to Bitcoin while holding the cryptocurrency in the spot market

Golden Finance reported that 10x Research recommended selling out-of-the-money (OTM) call and put options related to Bitcoin while holding the cryptocurrency in the spot market. In addition to the upside from cash market holdings, the so-called "covered wide straddle strategy" will generate a 17% yield. 10x Research said that BTC investors looking to generate additional income in addition to spot market holdings should consider developing a “covered wide kill” options strategy. Markus Thielen, founder of 10x Research, said that our favorite strategy is to buy Bitcoin spot, sell 100,000 exercise calls, and sell 50,000 exercise puts expiring in December 2024. The return on selling the call option is 11%, and the return on selling the put option is 6%. Therefore, this strategy gives us a 17% downside buffer or 17% additional yield, depending on the December BTC closing price, and we will capture all upside (or downside) in Bitcoin.