Many friends don’t understand why I buy IBIT and then purchase IBIT put options (PUT). Let me explain briefly. Buying IBIT is equivalent to holding BTC price exposure—you bear both the ups and downs. Buying PUT doesn’t mean you didn’t buy IBIT; it’s like purchasing insurance for your position. You can still enjoy the upside gains, but in the worst-case scenario, your losses are capped within a certain range. Example: I buy one share of IBIT at $20 and simultaneously purchase a PUT option with a strike price K=$20 and expiration date T, paying a premium P (e.g., $2). If IBIT surges, the spot position profits, and the PUT will likely lose its premium P due to time decay. This is essentially like paying $2 for “insurance.” If IBIT trades sideways, the spot position doesn’t move much, and the PUT will gradually lose value due to theta decay—this is the wear and tear. But if IBIT drops significantly, the PUT will become increasingly valuable, offsetting the losses from the spot position. The deeper the drop, the stronger the protection. In theory, the maximum loss I face is P (or P plus minimal execution friction), not unlimited downside. So, the essence of this strategy isn’t that price movements don’t matter—it’s about using a fixed cost P to cap downside risk while keeping the upside exposure. When the trend strengthens, you can close the PUT to reduce costs, but that’s equivalent to canceling the insurance. @bitget VIP, lower fees, better perks!