How To Buy Call Options On Bitcoin (2020)

In this video, I discuss how to buy long-dated call options on Bitcoin, using the LedgerX exchange. This is a risky trade and could result in the 100% loss of any capital invested.

Bitcoin call options on LedgerX each correspond to 1/100 of a Bitcoin. So if one wants full exposure to 1 Bitcoin as the underlying, one will need to buy 100 call options.

I examine the possible payouts for two different out-of-the-money strikes: the December 2021 15,000 and 50,000 strikes. I note that one risks 100% in premium to possibly get a 19x to 31x payout if Bitcoin is at $100,000 on December 31, 2021.

Because these European call options are physically-settled, one can exercise one's long call option at expiration and receive actual Bitcoin. One can also trade out of the long call option position at any time and take profits in U.S. dollars, simply by "selling to close" the call option.

Not investment advice! Consult a financial adviser.

Introduction to trading call options:
https://www.youtube.com/watch?v=eOZ4-bGHXow

Where to trade options on Bitcoin:
https://www.ledgerx.com/

Bitcoin option FAQs:
https://support.ledgerx.com/hc/en-us/articles/360043724713-Options-FAQs

Buying call options on LedgerX:
https://support.ledgerx.com/hc/en-us/articles/360044339734

Trading fees on LedgerX:
https://support.ledgerx.com/hc/en-us/articles/360041132493-Trading-Fees-Contract-Listing-Policy-Hours-of-Operation

Plan B's price targets for Bitcoin:
https://medium.com/@100trillionUSD/modeling-bitcoins-value-with-scarcity-91fa0fc03e25

https://medium.com/@100trillionUSD/bitcoin-stock-to-flow-cross-asset-model-50d260feed12

Matthew Kratter is the author of the Amazon best-seller "A Beginner's Guide to the Stock Market":
https://www.amazon.com/Beginners-Guide-Stock-Market-Everything-ebook/dp/B07S31TBF5

If you like my teaching style and would like to learn more about investing and trading stocks, options, and futures, be sure to check out my online courses here:
https://www.trader.university/join

Use this secret coupon code to get a discount: YT99

#Bitcoin
#CallOptions


Disclaimer
Neither Trader University, nor any of its directors, officers, shareholders, personnel, representatives, agents, or independent contractors (collectively, the “Operator Parties”) are licensed financial advisers, registered investment advisers, or registered broker-dealers. None of the Operator Parties are providing investment, financial, legal, or tax advice, and nothing in this video or at www.Trader.University (henceforth, “the Site”) should be construed as such by you. This video and the Site should be used as educational tools only and are not replacements for professional investment advice. There is a high risk in trading.