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Income Trader
Reliable Income From Time-Tested Strategies

February 2, 2024

In Income Trader, we’ve managed to lock in a return of 40.1% in BITO. Not many can say they’ve made money in BITO, or any other crypto-related asset, since the beginning of June 2022. Just another reason why more and more individual investors are flocking to the tried-and-true, mechanically driven, income wheel approach.

ProShares Bitcoin ETF (BITO)

In Income Trader, we’ve managed to lock in a return of 40.1% in BITO. Not many can say they’ve made money in BITO, or any other crypto-related asset, since the beginning of June 2022. Just another reason why more and more individual investors are flocking to the tried-and-true, mechanically driven, income wheel approach.

It’s time to bring BITO back into the fray. Today I want to open a new position in BITO by selling puts for the March 15, 2024, expiration cycle at the 19 strike. By doing so, I have the ability to bring in roughly $0.87, or 4.6% over the next 42 days.

BITO is currently trading for 20.33.

Here is the trade:

Sell to Open BITO March 15, 2024, 19 put for $0.87. (As always, prices will vary, please adjust accordingly.)

COI_IT_020224_BITO_puts.png

Delta of short put: 0.35
Probability of Closing Out-of-the-Money: 58.16%
Probability of Touch: 72.25%
Total net credit: $0.87
Max return (cash-secured): 4.6%

Risk Management

We use BITO as part of our Income Wheel Portfolio, so if BITO closes below our put strike at expiration, we will be assigned shares of BITO (per the guidelines of the strategy). Until that point, we will repeatedly sell puts on BITO. Of course, any necessary trade alerts/updates will follow.

As always, if you have any questions, please feel free to email me at andy@cabotwealth.com.


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Andy Crowder is a professional options trader, researcher and Chief Analyst of Cabot Options Institute. Formerly with Oppenheimer & Co. in New York, Andy has leveraged his investment experience to develop his statistically based options trading strategy which applies probability theory to option valuations in order to execute risk-controlled trades. This proprietary strategy has been refined through two decades of research and real-world experience and has been featured in the Wall Street Journal, Seeking Alpha, and numerous other financial publications. Andy has helped thousands of option traders learn and implement his meticulous rules-driven options trading strategies through highly attended conferences, one-on-one coaching, webinars, and his work as a financial columnist. He currently resides in Bolton Valley, Vermont and when he’s not trading, teaching and writing about options, he enjoys spending time with his wife and two daughters, backcountry skiing, biking, running and enjoying all things outdoors.