Hello, fellow coin traders! Today, let’s take a look at options expert Adam (@BTC__options). His tweets are a living textbook for BTC options trading, full of useful information, market insights and trading ideas. Let’s take a look at the logic of his trading strategy today, and finally talk about how to invest based on his style.
1. Who is Adam? Let’s analyze his user profile first
Let me first briefly introduce this great man. He is a macro researcher who focuses on crypto options trading. His tweets are basically centered around BTC and ETH market dynamics, options strategies, and technical analysis. His style is very "practical": no nonsense, straight to the point, often throwing out specific trading suggestions, such as "BTC breaks through 65K, consider 70K Call, expiring in May". He is very timely, and he jumps out to share his views as soon as there is any market movement.
Judging from his tweets, he has a deep understanding of BTC price trends, technical indicators (such as RSI, support and resistance levels) and market sentiment. Moreover, he is not the kind of "keyboard warrior" who only talks but does not practice. The suggestions he gives often have clear directions and logic, like "real-time signals" for traders. However, he rarely talks about risk management details in his tweets, probably assuming that readers have some basic knowledge and can fill in the gaps by themselves.
2. His options trading characteristics: volatility is the core, flexible and changeable
After empirical analysis, I concluded that Adam's trading style has several distinct characteristics, which are particularly suitable for players in the highly volatile market such as cryptocurrency. Let's take a look at them one by one:
1. Volatility-driven, wide straddles become the "killer weapon"
The most popular combination strategies in his tweets are straddle options and wide strangle options . Why? He has grasped the soul of the BTC market - volatility. Bitcoin is either sideways or fluctuates by 10% a day. He is particularly good at taking action when volatility soars.
For example, he might tweet: "BTC is oscillating at 60K, IV (implied volatility) is rising, considering 60K Straddle, expiring in May." What does it mean? He expects the price to either soar or plummet, but the direction is uncertain, so he simply bets on both sides, betting on volatility itself. Wide straddles are similar, such as "58K Put + 65K Call", which has a lower cost, but requires greater volatility to make money. He treats volatility as an ATM, and especially likes to make arrangements before and after major events (halving, ETF news) to catch big market trends.
2. Trend following, leverage to amplify returns
In addition to volatility, he is also good at "chasing trends". Once BTC breaks through a key position, such as 65K, he may directly suggest a "70K Call" to bet on the upward momentum. This naked call option (single-leg trading) relies on the directionality of the trend. Once the option leverage is amplified, the profit can be multiplied several times.
Of course, he is not blindly following, technical analysis is his trump card. He keeps an eye on the breakthrough pattern, support and resistance, and trading volume, and his entry timing is quite accurate. Occasionally, he will add some hedging to the trend, such as "holding spot + 65K Put", which not only reaps the benefits of rising prices, but also prevents the risk of callbacks. When the trend comes, he will increase the leverage, with the support of technical analysis, and be bold and careful.
3. The volatility of the market consumes the time value
BTC doesn’t always run wildly. When it fluctuates sideways, he is not idle either. At this time, he may suggest “sell 70K Call” or “sell 50K Put” to earn the time value (Theta) of the option. In simple terms, it is to bet that the price will not break through the strike price and get the premium for free at maturity.
This kind of play is quite risky. If it breaks through, you may suffer a huge loss. However, he seems to know how to pick the right time. For example, he took action when BTC was stuck in the 62K-65K range. He relied on the accurate judgment of the shock range. Don't waste the shock market. Sell options to earn Theta and win in a stable market.
4. Event-driven, ambush in advance
Adam also has a keen sense of market events. Halving, macro data, and regulatory rumors can all ignite BTC volatility, and he often makes arrangements in advance. For example, "Halving is approaching, buy 80K Call, expiring in June", which is obviously looking at long-term positives, ambush options in advance, and wait for the market to ferment. Don't be soft-hearted when major events occur, and use options as a "leveraged sniper rifle" to seize long-term opportunities.
3. His profit model: volatility + time + trend, three-pronged approach
His profit model is actually quite clear, and the core is to play around with the characteristics of options:
- Volatility arbitrage : Straddles and wide straddles are his main force in catching volatility. When BTC fluctuates, the value of options rises rapidly, and he relies on this trick to take advantage of large fluctuations.
- Time value benefit : Sell options during volatility, and as time goes by, the premium will go into his pocket.
- Trend amplification : Use option leverage when following trends to get big returns with small investments.
- Hedging and locking in profits : Occasionally use protective options to stabilize spot or trend profits.
In short, he is like an "options generalist", catching the wave when the volatility is large, taking advantage of the time when the market is sideways, and magnifying the profit when the trend comes. He has played the characteristics of the BTC market very well.
4. How to learn his investment style? Five suggestions
1. Focus on volatility, not just price
When the implied volatility (IV) is high, consider a straddle or wide straddle to bet on a big market; when IV is low, you can try selling options to eat up the time value. How to read IV? All major option platforms (such as Deribit and Bybit) have data. Pay more attention to it and you will get a feel for it slowly. Newbies should not go all-in right away. Practice with a small position to get a feel for the volatility first.
2. Technical analysis to find the right entry point
He makes a living by technical analysis, so you also need to have some basic skills. Learn to look at support and resistance, breakthrough patterns, RSI, etc. Don't just listen to rumors. For example, BTC repeatedly tests around 60K, you can learn from him and wait for the breakthrough to be confirmed before buying Call or Put, don't guess the direction. Tools such as Greeks.live and TradingView are simple and easy to use.
3. Don’t miss out on event-driven developments and ambush them in advance
BTC market loves event catalysis, such as halving and ETF approval, which are all good opportunities for options. Learn from him to plan ahead, such as buying a forward option before the news, which has low cost and high potential return. But don't be too greedy, set a stop profit and stop loss, and don't be hit by a reversal. Pay more attention to the news source of the crypto circle on a daily basis, don't just focus on the price.
4. Take your own lessons on risk management
Adam rarely talks about risk management, so you can't just follow him and be vague. Options have high leverage, so you lose money quickly. It is recommended to set a position limit for each transaction (for example, 5% of the total funds). If the trend is wrong, stop loss, don't hold on. You can also learn hedging ideas, such as spot plus Put, double insurance. Newbies should play with the simulation first. Deribit has a test network, so you don't feel bad if you lose money.
5. Switch flexibly, don’t stick to one strategy
What makes him great? His strategy is changeable. You also need to learn to change your strategy according to the market: straddle when volatility is large, single leg when the trend is strong, and sell options when the market is sideways. Don't be stubborn. When the market does not follow your script, adjust quickly and don't fight. Review the market every day, take notes, and slowly develop a sense of the market.
In short, Adam's trading style is flexible and adaptable, especially for players who like to play with volatility and follow trends, his ideas are worth learning. However, options are a complicated subject, and his tweets are signals, not imperial edicts. Copying them is easy to fail, after all, everyone's capital and risk preferences are different. My suggestion is: treat him as a "weather vane", observe his logic more, and adjust it according to your own situation. What do you think of Adam's options trading method? Welcome to chat in the comment area!
