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Long call vertical spread
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Speculate on bitcoin price increase
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Long call with one strike price and a short call with a higher strike price and the same expiration
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Long call premium – short call premium
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High strike – low strike – cost of position
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Cost of position
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Long put vertical spread
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Speculate on bitcoin price decrease
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Long put with one strike price and a short put with a lower strike price and the same expiration
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Long put premium – short put premium
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High strike – low strike – cost of position
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Cost of position
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Long strangle
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Large bitcoin moves in either direction
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Long put and long call with the same expiration and out-of-the-money strike prices
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Long call premium + long put premium
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Unlimited (call side)
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Cost of position
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Collar
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Hedge against bitcoin price decline
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Short call and long put with the same expiration. The short call strike is above the ETP's current price and the long put's strike price is below it.
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Cost of underlying + put premium – call premium
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Call strike – ETP price – premium paid (or + premium collected)
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ETP price – put strike – premium paid (or + premium collected)
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