Bitcoin Hits Record Highs Above $126K, Analysts Highlight Bullish Plays for FOMO Traders

Bitcoin (BTC) has started October on a bullish note, surging past $126,000, in line with its historically strong seasonal performance. Traders who missed the early rally may now be feeling the pressure of FOMO — fear of missing out. For those looking to participate smartly, analysts suggest several bullish BTC option strategies.

Call Spreads
Markus Thielen, founder of 10x Research, recommends using out-of-the-money (OTM) calls or bull call spreads with 1–2 month expirations.

“Buying higher strike OTM calls or call spreads (for example, $130,000/$145,000) allows traders to gain from further upside without overpaying for implied volatility,” Thielen said.

A call option gives the buyer the right, but not the obligation, to purchase BTC at a specified price on or before a certain date. A bull call spread involves buying a lower strike call and simultaneously selling a higher strike call with the same expiration. This structure reduces upfront costs while limiting maximum loss to the net premium paid, offering a balanced way to participate in the rally.

Deribit’s Asia Business Development Head, Lin Chen, noted that traders are actively booking call spreads through block trades. “Flows are dominated by large blocks of call spreads, either very long-dated (Sep 2026) or very short-dated, likely monthly ones,” Chen said. “Profit-taking is also prevalent.”

Financing Call Spreads With Put Sales
Greg Magadini, director of derivatives at Amberdata, highlighted another strategy: financing call spreads by selling lower strike OTM puts.

“Selling OTM puts and using the proceeds to buy multiple call spreads helps minimize costs while still capturing upside potential,” Magadini explained.

However, this approach carries additional risk. Selling puts obligates the trader to buy BTC at the put strike price if the market falls below that level, exposing them to potential significant losses. While the bull call spread limits losses on the call side, the short put leg can create much larger downside exposure than the initial credit received.

Long-Term Perspective
For those seeking a simpler approach, buying and holding BTC has historically offered the strongest returns. Since 2011, BTC’s price has grown from just $1 to over $120,000, making it one of the most rewarding long-term investments in digital assets.