Options 101 — What does selling a Call in a bull market mean, and what are the outcomes? Let’s say you bought 1 bitcoin:native spot at $59,000. Now BTC bounces back to $63,000. Your unrealized profit is: 63,000 - 59,000 = $4,000 At this point, you sell a BTC call with a strike price of $64,000 and 2 days to expiration, with an annualized return of approximately 81%. This 81% annualized return translates to an actual premium of: 64,000 × 81% × 2 / 365 ≈ $284 If BTC expires below $64,000, this call becomes worthless, no need to settle, and you keep the full $284 premium. In this case, you still hold 1 Bitcoin + $284. If BTC expires above $64,000 (let’s say it reaches $66,000), the $64,000 call you sold gets exercised. (Typically, exercised calls will be surpassed.) Spot profit: 66,000 - 59,000 = $7,000 (actual profit) Call loss: 66,000 - 64,000 = -$2,000 (actual loss) Premium income: +$284 (actual profit) Total profit: 7,000 - 2,000 + 284 = $5,284 So, you can see that if BTC exceeds the strike price ($64,000), no matter how high BTC’s final price goes, your profit remains roughly the same. This shows that once the strike price is surpassed, any further BTC price increase has nothing to do with the seller. Selling a Call essentially means giving up any profit above the strike price in exchange for collecting the premium upfront, which is why it’s not suitable for use in a bull market. Bitget is here, and you’re instantly VIP! Crypto, US stocks, CFDs — seize global opportunities all in one place!