Bitcoin Options Traders Eye ‘Short Strangle’ Play Amid Signs of Near-Term Calm, 10x Research Says

10x Research Sticks With Short Strangle Strategy as Bitcoin Stays Rangebound

Bitcoin (BTC) traded within a narrow band through August, with volatility muted despite expectations for bigger moves. With conditions pointing to continued stability, 10x Research is again backing the “short strangle” strategy for September.

Founder Markus Thielen said selling out-of-the-money September puts near $95,000 alongside calls around $125,000 provides an opportunity to capture premium while BTC consolidates around $113,000. “Options are trading overpriced relative to realized volatility, and the term structure signals near-term calm,” he wrote.

The strategy benefits when prices remain within the defined range, as option premiums decay. Thielen’s earlier August short strangle—set between $105,000 and $130,000—delivered a 3.5% yield.

While profitable in quiet markets, the approach carries significant risk if volatility spikes sharply, requiring traders to actively monitor positions.