Typically, retail traders rely on leveraged futures positions which are highly susceptible to forced liquidations.
Using multiple call options can create a strategy capable of returns six times higher than the potential loss.
The Bitcoin options were set for the April 29 expiry, but this strategy can also be used on Ether options or a different time frame.
Meanwhile, this strategy’s maximum loss is 0.11 BTC if the price on April 29 trades below $46,000 or above $55,000.
The allure of this butterfly strategy is that the trader can secure gains that are six times larger than the maximum loss.