How to 100x your investment using OPTIONS
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Options are considered advance strategies for investing. My first impression too was that options are complex, and I don’t want to bother to learn how options work.
But when I learned options, it’s actually simple. It is true that there are a lot of options strategies that are advance or complex. But that’s not what I wanted to do.
Trading is never my style. I only buy assets that I believe will go up over the long term.
And actually, there is an option that is suitable for this strategy, this is called a call option.
Basically, buying a call option is buying the right to buy a stock at a specified price.
Here is chat GPT explaining it better:
The reason for buying a call option is because you anticipate a stock going higher. But why not just buy the stock instead? Because buying a call option gives you leverage.
Also, it will limit your loss to the premium or price you pay for the option. If you bought the stock instead and it goes to zero, you will lose all your money.
Buying call options also is cheaper than buying stocks.
Of course there are downsides in buying a call option. The downside is that your time is limited. So, you need to time it, because your call options will expire. Unlike owning stocks themselves, you can hold them forever and wait for it to go up. Call options have expiration dates.
So, if I’m not a trader, why am I buying call options that have time that expires? Does that mean I am timing the market making me a trader?
No, I’m still not a trader, the call options I’m buying are long-term called LEAPS (Long Term Equity Anticipation Securities).
The downside is that LEAPS are expensive.
But since I only invest in bitcoin, and I believe that bitcoin still follows a 4-year cycle (not financial advice), I am then anticipating a bull market that will top around late 2025 next year. Of course this could be all wrong.
But since I’m betting on that outcome, I bought leaps that will expire on Jan 2026.
There are currently no options on bitcoin. I believe there are options in some offshore exchanges, but I don’t want to use them.
I want to buy within my current brokerage I use which is IBKR.
Currently there are no options on bitcoin ETFs.
So, the best option is to buy bitcoin stock proxies. And the best bitcoin proxy stock is MSTR (MicroStrategy).
MSTR owns the most bitcoin among public corporations. They track and outperform bitcoin. Watch this YouTube channel if you want to learn more about this company.
However, the problem is that I could not afford MSTR Leaps because the stock price is so expensive.
So, I search for a more affordable options and bought BITO calls instead. BITO is a futures ETF that tracks bitcoin. It doesn’t track bitcoin price 100% because it is futures not spot.
Sadly, when I got introduced to options, I FOMO and bought during the local top when bitcoin was at $73k.
I bought because my bitcoin price target around late 2025 is between $200k to $400k.
My BITO call options are down now that bitcoin is currently at $65k. Bitcoin had a correction to $49k.
This August, MSTR did a stock-split. This result to cheaper MSTR price therefore making the options more affordable. I don’t want to pass up for this opportunity that’s why I bought another call options which are MSTR Leaps.
To date, I now hold both Jan. 2026 BITO Calls $35 & Jan. 2026 MSTR Calls at $300 strike price.
Here is a look at my call options:
There are dangers in owning options, so here are some warnings/reminders in case you want to explore options further:
Only bet what you can afford to lose. Don’t bet all your portfolio into options just because you wanted to magnify or leverage your gains. Options is like leverage. It is a risky play because you need to be right on a limited time.
That’s why the first thing you should ask when buying call options is that am I willing to lose what I am going to bet?
Read a lot or watch a lot of YouTube videos about options. Also practice if you can before buying. I did practice buying some cheap calls on bitcoin miner before I bought BITO calls. I am also practicing selling covered calls and cash secured puts in preparation for the strategy I will be using for my IBKR portfolio.
Cold Storage, no leverage bitcoin is still the Gold (bitcoin) standard. Having a lot of cold storage bitcoin is still the best. Options has lot of risks. Cold Storage bitcoin should be the majority of your stack. The mistake we all can make is to part with our bitcoin stack. My options are less than 10% of my bitcoin stack.
I wanted to share this because I just wanted to open source my trades. Also, this is not financial advice. I believe there is value on learning how to use options. Especially if you believe in bitcoin 4-year cycles.
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