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BITO trade ideas

Trading Idea: BITO September 16th 2 x 19/25 Call RatioI'm not quite ready to pull the trigger on this setup, as I'm waiting for support at around 22 to present itself (at which time the strikes of this setup would naturally have to be adjusted lower). However, I wanted to price it out here just to look at buying power effect. To set up this trade, I'd be buying 2 x the 75 delta calls (for 150 long delta) and selling the 50 delta call, resulting in a setup that is around net delta 100 long and with a break even at or around where the underlying is currently trading. Current Metrics: Max Loss/Buying Power Effect: 10.13 ($1013) Max Profit: Theoretically Infinite Break Even: 24.07 vs. 24.02 spot (as of Friday close) Delta/Theta: -.67/97.30 Doing things this way allows me to basically take the equivalent of a one lot position in BITO for far less than I would if I bought the stock outright and for less than half the cost (and risk).
AMEX:BITOLong
by NaughtyPines
1
ProShares Bitcoin Strategy ETF (BITO)Remember when BITO came out in October 2021 when Bitcoin was trading at all-time highs +$60k? Well, a lot has happened since I checked this etf out. So, I decided to adjust my MTTC script and input BTC/USD as the source and overlay it onto BITO. Their % price action is clearly directly correlated obviously. Do your own due diligence, your risk is 100% your responsibility. This is for educational and entertainment purposes only. You win some or you learn some. Consider being charitable with some of your profit to help humankind. Good luck and happy trading friends... *3x lucky 7s of trading* 7pt Trading compass: Price action, entry/exit Volume average/direction Trend, patterns, momentum Newsworthy current events Revenue Earnings Balance sheet 7 Common mistakes: +5% portfolio trades, capital risk management Beware of analyst's motives Emotions & Opinions FOMO : bad timing, the market is ruthless, be shrewd Lack of planning & discipline Forgetting restraint Obdurate repetitive errors, no adaptation 7 Important tools: Trading View app!, Brokerage UI Accurate indicators & settings Wide screen monitor/s Trading log (pencil & graph paper) Big, organized desk Reading books, playing chess Sorted watch-list Checkout my indicators: Fibonacci VIP - volume Fibonacci MA7 - price pi RSI - trend momentum TTC - trend channel AlertiT - notification tickerTracker - MFI Oscillator www.tradingview.com
AMEX:BITOLong
by Options360
2
The Week Ahead: XBI, ARKF, ARKG, BITO, ARKK, KWEB, IWM/RUTEarnings: TSLA (63/69). Announces on Wednesday after market close, so if you're looking to play the volatility contraction, look to put on a play in the waning hours of Wednesday's session or, if implied volatility afterglow persists, early Thursday after it has made its move. If NFLX earnings is any indication of whether TSLA will "behave," you may want to consider waiting until after the announcement to avoid a repeat of "the Netflix experience." As it is, the January 28th options are pricing in something bigly: +/- $82 or so, so 862 on the put side, 1026. Exchange-Traded Funds Screened for Rank >70%/30-Day >35%, Implied Volatility Rank Ordered: Cathie Woods' funds continue to have a really bad hair day/week/month ... . XBI (100/48) ARKF (97/59) ARKG (87/66) BITO (82/85) ARKK (82/62) KWEB (74/58) EWZ (51/40) Pictured here is a bullish assumption BITO March 18th 17 short put, paying .60 at the mid price on buying power of 16.40. The broker is still requiring it to be cash-secured, so the ROC %-age is not all that sexy: 3.7% at max (25.0% annualized) as a function of buying power effect. Because of that, I would consider slapping on a cheap put to bring in the buying power effect, but the best you can currently do is to buy the 13, making it into a four-wide paying .38, and that amount isn't particularly compelling, particularly if you're going to be taking profit at 50% max. The ROC %-age is way better (9.5% at max), but I'd rather look at a setup where the long leg costs something like .05-.10, so I may stick a pin in that trade; lower strikes may populate at some point. Broad Market Exchange-Traded Funds, Implied Volatility Rank Ordered: QQQ (77/33) IWM (77/35) SPY (73/28) DIA (72/26) EFA (65/23) In the retirement account, I'll basically continue to ladder out short put as long as IVR/IV remains elevated. This is the exact environment in which I like to make additions on the put side: weakness plus increased implied volatility. Naturally, one begets the other. I'll also be keeping an eye on net portfolio delta to see if additional short delta hedge is required to keep me from getting overly directional which can make things more uncomfortable in a protracted down turn. I point this out because what people primarily see in my feed is "short put, short put, short put" and not the short delta hedges put on that are just kind of running in the background. There is individual trade delta, but also portfolio-wide delta.
AMEX:BITO
by NaughtyPines
Closed: BITO January 21st 25/44 Short Strangle... for an .80 debit. Comments: Filed this for a 1.60 credit (See Post Below; out here via good-until-cancelled order to take profit at 50% max. .80/$80 profit. 3.3% ROC as a function of buying power effect. Although implied volatility has contracted a bit, will consider re-upping in the February cycle after New Year's, assuming the strikes above 40 get populated. Currently, the February 18th 40 short call is the highest available strike, with a delta of .29.
AMEX:BITO
by NaughtyPines
BITO Bitcoin Futures ETF: Inefficient & very expensive productSUMMARY: Don't touch, these are inefficient financial instruments and one is better off buying and owning Bitcoin itself. There is a huge administrative cost to owning an ETF , in addition to the costly futures contract that underlies it. It has been forecasts that there could be as much as a "11% drag on yield" using a Bitcoin Futures ETF. The fund portfolio manager needs to paid; the exchanges need to be paid for opening the futures contracts, there is large basis risk as they need to roll the positions forward every quarter. On top of the fact, futures exchanges are closed on the weekend whilst Bitcoin trades 24/7. Huge tracking risk, especially if BTC was to crash after the futures exchange closed on a Friday. Additional fees include auditors, custodian bank, pay for expensive compliance teams to monitor the positions and report daily to the regulators. OR! One can buy the BTC direct and avoid the aforementioned BS. Just as Bitcoin was intended to be owned. Own BTC directly, means 100% of the gains belong to you! AND! it is less risky.
AMEX:BITOShort
by Tez8
Tutorial: "Safety Taping" Naked Positions to Bring in BPEExample 1: Safety Taping a Short Strangle Pictured here is a BITO short strangle that I entered on 12/8 for a 1.59 credit on buying power of 24.16. (See Post Below). At this point, I'm considering "safety taping" the naked short strangle off to bring in buying power effect. A "safety tape" setup can also be used to offer additional protection against an outsized move to either side and therefore limit loss. In this particular case, I'm looking to shop for cheap longs in the expiry in which my short strangle is set up. I can also do this in shorter duration (which will not give me buying power relief, but will protect me from an outsized move), the same duration as the naked, or in longer duration. Here, I can buy cheap wings that dramatically cut that 24.16 buying power effect. The 16/55 long strangle would cost .27 to put on (as of Friday's close) and would result in a 16/25/44/55 iron condor, the widest wing of which is 11-wide. This brings in buying power effect in from 24.16 by more than half, since the maximum risk of the safety-taped setup is that of an 11-wide minus the net credit received. Naturally, I'm paying a debit to do this, which reduces my net credit received for the setup from 1.59 to 1.59 - .27 = 1.32, but it also dramatically improves my potential ROC as a function of buying power effect from the original 6.6% at max to 13.6% at max. Example 2: Safety Taping a Short Put For "wheelers" (i.e., short put, acquire, cover), safety taping off short puts can also conserve buying power, particularly in a cash secured environment like an IRA. Example: BITO January 21st 23 Short Put .61 Credit Buying Power Effect: 22.39 (Cash Secured) ROC as a Function of BPE: 2.72% vs. BITO January 21st 16/23 Short Put Vertical .53 Credit Buying Power Effect: 6.47 ROC as a Function of BPE: 8.19%
AMEX:BITOEducation
by NaughtyPines
2
Opening (Margin): BITO January 21st 25/44 Short Strangle... for a 1.59 credit. Comments: Selling ~16 delta premium in high implied BITO (30-day at 82%). Unfortunately, because the broker's basically requiring that this particular underlying be cash-secured, the ROC isn't very sexy as a function of buying power effect: $159 credit on a buying power effect of $2416 or 6.6% at max/3.3% at 50% max. In any event, will look to take profit at 50% max; manage sides on approaching worthless or side test.
AMEX:BITO
by NaughtyPines
4
BITO ETF Bitcoin: Seems like a waste of money buying theseSUMMARY: Don't touch, these are inefficient financial instruments and one is better off buying and owning Bitcoin itself. There is a huge administrative cost to owning an ETF, in addition to the costly futures contract that underlies it. The fund portfolio manager needs to paid; the exchanges need to be paid for opening the futures contracts, there is large basis risk as they need to roll the positions forward every quarter. On top of the fact, futures exchanges are closed on the weekend whilst Bitcoin trades 24/7. Huge tracking risk, especially if BTC was to crash after the futures exchange closed on a Friday. Additional fees include auditors, custodian bank, pay for expensive compliance teams to monitor the positions and report daily to the regulators. OR! One can buy the BTC direct and avoid the aforementioned BS. Just as Bitcoin was intended to be owned. Own BTC directly, means 100% of the gains belong to you! AND! it is less risky.
AMEX:BITO
by Tez8
Is BITO Finding Its footing?BITO, a Proshares ETF strategy for Bitcoin futures, has filled the gap created on the daily chart at around $40. I'm interested in taking a position in this instrument but had my doubts when I saw the bearish engulfing candle on the daily created back on 11/10/21. The crypto bulls really don't like BITO because the fund doesn't hold any actual Bitcoin, but rather values on the future price movements of Bitcoin. BTC/USD seems to be on a fairly strong uptrend, but as we all know BTC can turn on a dime. BITO has good daily volume (over 9 millions shares daily). If it can clear $44.28 and hold, I will look to go long.
AMEX:BITOLong
by lancer5599