Bitcoin experts prefer this defined-risk strategy for the next leg higher in prices

Missed Bitcoin’s initial climb to $80,000 and looking for a smart way in? Industry experts favor a defined-risk strategy known as call spreads for the next leg higher.

The strategy is popular with traders looking to profit from an expected price rise while capping potential losses. It involves buying the right to purchase BTC at a given price, such as $80,000, and simultaneously selling the right for someone else to buy it at a higher price, say $90,000, capping both the upside and downside.

The maximum profit is the difference between the two strike prices minus what the call spread buyer paid for the spread. The maximum loss is limited to the initial premium.

"Call spreads remain an appealing mechanism for upside exposure into September,” said Jean-David Pequignot, the chief commercial officer at Deribit, the world’s largest crypto options exchange by volume and open interest.

“Long call spreads allow traders to buy the cheaper wing of a skew leading toward downside puts, capturing potential post-expiry upside while maintaining defined risk ahead of Fed and inflation catalysts," he told CoinDesk.

He added that put options, which are bets that protect against BTC price losses, remain relatively expensive.

Markus Thielken, the founder of 10x Research, also prefers call spreads.

"Buy BTC and sell $90,000 September calls against it. Because of higher implied volatility, the premium brings in yield, which also lowers your risk. An alternative is the 85/95 September call spread," he said.

Analyst consensus remains bullish. BlackRock recently cited U.S. fiscal issues as a major bullish tailwind for assets like BTC and gold.

While BTC is on track for its biggest monthly gain since 2024, one cautionary note is that September has historically been a mildly bearish month. Since 2013, it has averaged a negative 3% return, according to data source Coinglass.