Many friends do not understand the reason for buying $IBIT and then buying IBIT put options (PUT), let me explain briefly.

Buying IBIT is equivalent to having exposure to the price of $BTC, and you have to bear both ups and downs. Buying a PUT does not mean you haven't bought; rather, it provides insurance for this position against downward movement, still allowing for upside benefits, but in the worst-case scenario, losses are capped within a range.

For example: I buy one share of IBIT at $20, while also buying a PUT with a strike price K=20 and an expiration date T, paying a premium P (for example, $2).

If IBIT rises sharply, the spot gains will be real, but the PUT will likely lose the premium P due to time decay, which is akin to me paying a $2 premium for "insurance."

If IBIT moves sideways, the spot won't change much, and the PUT will also gradually depreciate because of theta, which is wear and tear.

But if IBIT falls sharply, the PUT will gradually become more valuable, offsetting spot losses. The deeper it falls, the stronger the protection, theoretically my maximum loss is P (or P plus minimal execution friction), rather than an unlimited downside.

So the essence of this combination is not that it doesn't matter whether it goes up or down, but rather that with a fixed cost P, it caps the downside risk while retaining exposure to upside gains. When the trend is confirmed to strengthen, the PUT can be closed to lower costs, but that is equivalent to removing the insurance.

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