10 Best Crypto Option Trading Strategies

The Best Crypto Option Trading Strategies You Should Know: Bullish, Bearish & Neutral Setups

Hey traders, if you have small money, and want to option selling, And want know option trading strategies, so this information is of yours. Today I am going to tell about all of option selling trading strategies for crypto, In the crypto you can sell BTC with in 1 dollar.

If you’re getting into crypto options trading, or maybe you’ve been dabbling already, there’s one powerful style of trading you absolutely need to understand — option selling strategies.

So in this post, I’m going to personally walk you through my favorite option trading strategies— the ones I use when I’m bullish, bearish, or neutral on Bitcoin, Ethereum, or any other crypto asset.

We’ll keep it simple, practical, and example-based. And yes — I’ll show you how this plays out on platforms like Delta Exchange and Binance Options.

Today I am focus only on crypto option selling strategies, not buying or future trading.

What is Option Selling Trading Strategies

Let me put it straight: when you sell an option, you’re taking the other side of someone else’s bet. They’re buying time — and you’re selling it to them. You’re basically saying:

“Sure, I’ll sell you this bet — but I’m keeping the premium whether you win or not.”

And guess what? Most options expire worthless. That means option sellers often end up keeping the premium without doing much — if they play smart.

But before you go out and start selling blindly, you need a strategy. Not just “sell whatever looks expensive.”

Let’s break it down into three buckets — based on your market view:

• Bullish (you think price will go up or stay steady)
• Bearish (you think price will go down)
• Neutral (you think price will move sideways or stay within a range)

Option trading stratgies

Bullish: Option Trading Strategies

Let’s say you think Bitcoin is going to go up, or at least not crash down. You’re not trying to double your money overnight — you just want to make steady returns from this view. These are the strategies I’d use.

1. Short Put – The Classic Income Strategy

You sell a put option — which means someone is paying you because they want the right to sell you BTC at a certain price.

Why would you do that?

Because you think BTC won’t go below that level. And if it does, you’re happy to buy it at a discount anyway.

Example (Delta Exchange):
BTC is trading at $31,000.
You sell a 30,000 PUT option for $800.
If BTC stays above 30k, you keep the $800.
If BTC drops below 30k, you might have to buy it — but hey, you’re getting it cheaper and you kept the premium.

   Profit ▲
          |
    $800 ─┼────🟢──────────── BTC stays above $30K → Keep full premium
          |     \
      $0 ─┼──────\──────────────⚫──────────── BTC →
          |       \            🔴 Breakeven at $29,200
 -$1,000 ─┤        \
          |         \
          ▼──────────▼───────────────
         30K      29.2K           ↓
       (Put)   (Breakeven)    (Big Loss If BTC crashes)

Why it works: You get paid just for being willing to buy BTC at a lower price.

2. Bull Put Spread – Safer Than a Naked Put

Let’s say you want to reduce risk.

You can sell a 30k put and buy a 28k put. That way, your maximum loss is limited.

Example (Binance):
Sell BTC 30k PUT – collect $800
Buy BTC 28k PUT – pay $400
Net profit = $400
Max loss = $2,000 – $400 = $1,600

   Profit ▲
          |
    $400 ─┼────🟢────────────────────── BTC > $30K = Max Profit
          |      \
      $0 ─┼───────\────────⚫──────────── BTC →
          |        \      🔴 Breakeven = $29,600
 -$1,600 ─┤         \      
          |          \   🔻 Max Loss if BTC ≤ $28K
 -$2,000 ─┴──────────▼────────────────────
         28K       29.6K        30K+ →
        (Buy)   (Breakeven)   (Sell)

Why it works: Still gives you premium income, but you’re protected if BTC crashes.

3. Put Ratio Spread – A Bet on Slow Uptrend

This one’s a little advanced but useful. You sell two puts and buy one further OTM put.

Why? You’re expecting BTC to hover near the sold strike.

You’ll collect a premium and can profit as long as BTC doesn’t crash hard. But be careful — if the price falls sharply, it can hurt.

Assume:

• BTC Spot Price: $65,000
• Expiry: 1 Month
• View: BTC might fall slightly or stay around $62,000–63,000
• Buy 1 BTC 65,000 Put @ $2,000 premium
• Sell 2 BTC 62,000 Puts @ $1,200 premium each

Net Premium Received:
Received = 2 × $1,200 = $2,400
Paid = $2,000
Net Credit = $400

Call Ratio Spread – BTC Example

       Profit ▲
              |
        $3.4K ─┼────🟢──────── Peak profit if BTC ≈ $62K
              |     /
        $400 ─┼────/───────────────────── BTC ↓ but stays > $59.6K
              |   /
          $0 ─┼--⚫----------------------- Breakeven ≈ $59,600
              | /
      –∞ (∞) ─┴▼──────────────────────── BTC < $59K → Unlimited Loss
             59K   62K     65K
            (↓Loss)(Peak)(Buy Put)

Bearish: Option Trading Strategies

Okay, let’s say you think ETH is overheated — maybe it’s been pumping too hard, and you expect a pullback. That’s when bearish selling strategies come in.

1. Short Call – A Direct Bet Against the Price

You sell a call option — so someone pays you for the right to buy ETH at a higher price.

Example (Delta Exchange):
ETH is at $2,800
You sell a 3,000 CALL for $150
If ETH stays below $3,000, you keep that $150
But if ETH explodes upward, you’re in trouble — unlimited risk

   Profit ▲
          |
    $150 ─┼────🟢───────────────────── ETH stays below $3,000 → Keep premium
          |     \
      $0 ─┼──────\────────⚫──────────── ETH →
          |       \      🔴 Breakeven = $3,150
 -$500 ──┤        \
          |         \ 🔻 Loss starts here
-∞ (∞) ───┴──────────▼───────────────
         3K       3.15K         ↑
       (Strike) (B.E.)       (Exploding ETH)

Be careful: Naked calls can be dangerous. Use small size or hedge it.

2. Bear Call Spread – Safer Short Call

Sell one call, buy a higher one to cap the risk.

Example (Binance): ETH is at $2,800
Sell ETH 3,000 CALL – collect $150
Buy ETH 3,200 CALL – pay $50
Net income = $100
Max risk = $200

   Profit ▲
          |
    $100 ─┼────🟢──────────────────── ETH < $3K = Keep full credit
          |     \
      $0 ─┼──────\────────⚫──────────── ETH →
          |       \      🔴 Breakeven = $3,100
    -$100 ┤        \     
          |         \  
    -$200 ┴──────────▼───────────────
         3K       3.1K       3.2K →
       (Sell)   (B.E.)     (Buy Call)

This is cleaner, safer, and great when you think a top is near.

3. Call Ratio Spread – Low Volatility Bearish Bet

Sell two calls, buy one above. You collect premium and hope ETH stays within a range.

Again, this is a bit advanced and not for highly volatile times — but works well if the market feels like it’s topping out and settling down.

Example

• BTC Spot Price: $65,000
• Expiry: 1 Month
• Market View: Slightly bullish (expecting move toward $68,000–69,000)
• Buy 1 BTC 65,000 Call @ $2,000 premium
• Sell 2 BTC 68,000 Calls @ $1,200 premium each

Net Premium = +$400 (credit)
(Receive $2,400 – Pay $2,000)

Call Ratio Spread – BTC Example

Profit ▲
       |
 ₹3K ──┐                 🔺 Max Profit (BTC ~ 68K)
       |                /
 ₹2K ──┤               /
       |              /
 ₹400 ─┼────🟢───────────────➡ (Flat gain up to ₹68K)
       |     \        🔻
   0 ──┼──────\────────⚫──────────── BTC →
       |       \       🔴 Breakeven at ₹70.6K
-₹2K ──┤ \
| \
▼─────────▼──────────────
65K 68K 70.6K+
(Buy) (Sell×2) (Loss Starts)

Neutral: Option Trading Strategies

This is my personal favorite type of market. If BTC is bouncing between support and resistance, going nowhere fast — selling options in neutral strategies can generate consistent income.

1. Short Straddle – The Premium Monster

Sell both a call and a put at the same strike (usually ATM).

Example (Delta Exchange):
BTC at $30,000
Sell 30k CALL
Sell 30k PUT
You collect, say, $1,200 total
If BTC stays near 30k — boom, you keep it all

   Profit ▲
          |
   $1.2K ─┼────🟢────────────── BTC stays near $30K
          |     \
      $0 ─┼──────\──────⚫────── BTC →
          |       \    🔴 Breakevens: 28.8K & 31.2K
 –∞ (∞) ──┴────────\───────────────
         28.8K     30K     31.2K
        (↓ Loss)  (Peak)  (↑ Loss)

But: If BTC moves big in either direction, losses can snowball.

Best for: Quiet weeks, low volatility, or pre-halving “wait zones”.

2. Short Strangle – Safer Version of Straddle

Sell an OTM call and an OTM put.

Example:
Sell 28k PUT and 32k CALL
You collect less premium (say $600), but your breakeven range is wider

   Profit ▲
          |
    $600 ─┼────🟢──────────── BTC stays between $28K–$32K
          |     \
      $0 ─┼──────\──────⚫────── BTC →
          |       \    🔴 Breakevens: 27.4K & 32.6K
 –∞ (∞) ──┴────────\───────────────
        27.4K     30K     32.6K
       (↓ Loss) (Spot)   (↑ Loss)

This is one of the safest and most used neutral strategies.

3. Iron Condor – The Chill Seller’s Strategy

This one is like a strangle, but you also buy wings for protection. That limits your max loss.

Example (Binance):
Sell 29k PUT and 31k CALL
Buy 28k PUT and 32k CALL
Collect $150
Max loss = $850 (fully defined)

   Profit ▲
          |
    $150 ─┼────🟢──────────── BTC stays 29k–31k
          |     \
      $0 ─┼──────\────⚫────── BTC →
          |       \  🔴 Breakeven: 28.85K & 31.15K
   –$850 ─┴────────\────▼───────────────
        28K  28.85K  30K  31.15K  32K
       (Loss) (B.E.)      (B.E.) (Loss)

Perfect if BTC stays range-bound and you want risk defined.

4. Iron Butterfly – Narrower Range, Higher Reward

Sell ATM put and call, buy wings further out.

You collect more than a condor, but need price to stay really close to the middle.

Works great in low-volume weekends or post-news consolidation.

Sell 1 ATM Put & Sell 1 ATM Call (same strike)
Buy 1 OTM Put (lower strike)
Buy 1 OTM Call (higher strike)

Max Profit = Premium Collected
Max Loss = Spread Width – Premium
Breakeven = Strike ± Premium
Risk = Defined and Limited
Best Case = Underlying closes at strike

   Profit ▲
          |
    $400 ─┼────────🟢──────── Peak if BTC = 30k
          |       /\
      $0 ─┼──────/  \──────── BTC →
          |     /    \
   –$600 ─┴────▼──────▼───────────────
        29K  29.6K   30.4K  31K
       (Loss)(B.E.)       (Loss)

Why Trade Crypto Options?

Crypto options aren’t just another trading gimmick—they’re powerful tools used for risk management, speculation, and income generation.

Let’s break down the benefits:

1. Hedge Against Risk: If you’re holding Bitcoin but fear a price drop, buying a put option can act as insurance.
2. Profit in Any Market: Bullish? Use a long call. Bearish? Go for a long put. Expecting volatility? Try a straddle or strangle.
3. Leverage: Trade large positions with relatively small capital. This means higher potential returns—along with higher risks.
4. Defined Risk: With options, your maximum loss is limited to the premium paid. You know your downside in advance.
5. Portfolio Diversification: Options allow for creative strategies that aren’t possible with just spot trading.

Think of options as giving you more “plays” in the crypto game. You’re no longer just buying and selling—you’re planning your moves like a chess master.

How to Trade Bitcoin Options in India: Best Platforms to Use

If you’re from India and you’re wondering how to actually start trading BTC options, let me make it simple for you.

For Indian Users: Delta Exchange is Your Best Bet

If you’re based in India, Delta Exchange is one of the best platforms to start with.

• It’s a crypto derivatives exchange made for serious traders
• It supports BTC, ETH, and altcoin options
• You can do option selling strategies like short puts, call spreads, condors, etc.
• It allows INR deposits via bank and UPI, making onboarding easy for Indian users
• KYC is quick and focused on Indian regulations

So if you’re looking for a place to execute all the strategies we discussed — especially with low fees and fast execution — Delta Exchange is ideal.

Tip: You can even paper trade strategies on Delta before using real money.

For Global Traders: Binance Options Works Great

If you’re not in India or prefer a more global platform, Binance Options is another excellent choice.

• Offers USDT-settled BTC and ETH options
• Simple UI, integrated with your existing Binance wallet
• Best for short-term options (1-hour to 1-day expiry)
• High liquidity and deep order book

Just remember: Binance Options currently supports European-style, cash-settled options, mostly for short-term trades — so strategies like short-term straddles or scalping with iron condors work well here.

Final Suggestion For Choosing Exchange

For Indians:
Start with Delta Exchange — it gives you all the tools for serious options trading, INR access, and deeper flexibility.

For others:
Binance Options is fast, reliable, and great for quick tactical plays in BTC and ETH options.

How Crypto Options Work

Options may seem complicated, but once you grasp the main parts of a contract, it becomes easier. Let’s decode the elements of a typical crypto option.

Strike Price, Expiry Date, and Premium

• Strike Price: The set price at which the asset can be bought (call) or sold (put).
• Expiry Date: The date the contract expires. After this, it becomes worthless.
• Premium: The cost to purchase the option. It’s what you pay upfront, and it’s the maximum you can lose.

American vs European Options

• American Options: Can be exercised at any time before expiration.
• European Options: Can only be exercised on the expiry date.

In crypto, most platforms use European-style options, especially for Bitcoin and Ethereum.

Understanding these components is like knowing the rules of poker. Once you do, you can start building winning strategies.

Benefits and Risks of Crypto Options

Options trading sounds enticing, doesn’t it? But like every shiny tool in your trading arsenal, it comes with both upsides and downsides. Knowing these will help you avoid traps and seize opportunities smartly.

Key Advantages of Trading Crypto Options

1. Flexibility: You can profit whether the market is going up, down, or even moving sideways. Options give you room to maneuver in ways spot trading never could.
2. Defined Risk: With a simple long option strategy, your risk is limited to the premium paid. No more, no less. That’s a huge psychological safety net.
3. Leverage: Instead of coughing up thousands of dollars to buy a whole BTC, you can control the same exposure with a much smaller premium through options.
4. Diversification: Add a new dimension to your portfolio. With options, you’re no longer just holding assets—you’re managing risk, enhancing yield, and positioning yourself tactically.
5. Income Generation: Strategies like covered calls allow you to earn premium income, especially useful in sideways markets.

Options aren’t just for gamblers. They’re for calculated risk-takers who understand how to turn market uncertainty into strategic advantage.

Understanding the Risks Involved

Now let’s talk about the not-so-glamorous side. Crypto options can bite if you’re not careful.

• Complexity: Options are multi-layered. If you don’t understand the greeks (delta, gamma, theta, etc.), you might be flying blind.
• Premium Losses: If your option expires out of the money, it becomes worthless. You lose the premium. Period.
• Leverage Can Cut Both Ways: Just because you can control a big position with a small premium doesn’t mean you should. Over-leveraging is a common newbie mistake.
• Liquidity Risk: Not all crypto options markets are as liquid as you’d like. Poor liquidity means slippage and difficulty closing positions.
• Volatility Sensitivity: Since options are priced based on volatility, sudden calm in the market can eat away at your potential profits through time decay (theta).

Smart options traders respect the risks. They never bet more than they can afford to lose, and they always have a plan.

Final Thoughts: Mastering Option Selling Trading in Crypto

If you want to level up your trading, learning how to sell options with the right strategy is a game changer.

• Use short puts and put spreads when you’re bullish
• Use call spreads and short calls when you’re bearish
• Use straddles, strangles, or iron condors when you expect a boring sideways market

Platforms like Delta Exchange and Binance Options give you the tools to execute all these setups with proper analytics and liquidity.

Just start small, understand your risk, and stick to your view.

Trust me — once you start thinking like a seller, you’ll never look at options the same way again.

So friends I hope you must liked option selling strategies for crypto.