SPECIAL REPORT

Bitcoin’s 3-Second Challenge

How to Make 10x More Gains From a Regular Brokerage Account
Bitcoin’s 3-Second Challenge:
How to Make 10X More Gains From a Regular
Brokerage Account
By Jeff Clark, editor, Jeff Clark Trader

The process of trading bitcoin changed forever last October.

It used to be hard to trade bitcoin.

You had to set up and fund a crypto wallet… place the transaction on a trusted
crypto exchange… wait days to find out if your trade went through… pay exorbitant
transaction fees… worry about the possibility of hackers getting into your account
and stealing your bitcoin.

And, if you forgot your password, then you pretty much lost all access to your bitcoin
funds.

In addition, you could only bet on bitcoin going up. So, if you wanted to try to profit
from a decline, then you were out of luck. It was impossible.

But last October, the ProShares Bitcoin Strategy ETF (BITO) started trading on the
American Stock Exchange. That made the bitcoin trading process as easy as placing a
trade in your brokerage account.

BITO is an exchange-traded fund (ETF) designed to mimic the price action in bitcoin
by trading bitcoin futures contracts.

Since futures can be more volatile than the underlying asset – and futures contracts
experience “time decay” similar to options as they approach expiration day – the
price action in BITO isn’t identical to that of bitcoin. But it’s close enough to trade off
of.

More importantly, we can trade options on BITO. So option traders who like the idea of
reducing their risk trading bitcoin, while increasing the potential for profit, now have
a way to implement that strategy.

With BITO, and BITO options, we now can profit on bitcoin if it goes up, down, or stays
the same.

And, because of the leverage that options provide, we can make 3X, 5X, or even 10X
the gains in bitcoin from a small move in the cryptocurrency itself.

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For example, on March 18, 2022, I spotted a bullish looking setup on the chart of
bitcoin. That same bullish setup was also on the chart of BITO. So, it looked like a good
time to bet on a bitcoin rally.

As traders, we had three choices…

1. We could’ve gone through the cumbersome process of setting up and funding a

bitcoin wallet, placing a trade on a cryptocurrency exchange, buying bitcoin near
$42,000 per coin, and paying all the various fees that go along with doing so.

2. We could’ve bought shares of BITO at about $26.50 per share in a regular

brokerage account.

3. We could’ve bought a call option on BITO – an option that goes up when bitcoin
rallies – for about $0.75 per share.

Obviously, I recommended the call option to Jeff Clark Trader subscribers.

Sure enough, bitcoin started to rally almost as soon as we got into the trade. Just
five days later, bitcoin had rallied to $43,200 per coin – a gain of about 3%. BITO also
popped about 3% higher and was trading near $27.20.

But the call option we purchased had gained 73%.

In other words, a relatively small gain of 3% in bitcoin had produced a solid 73% gain
on our BITO call option in just five days. We took that opportunity to book the gains on
a part of our position. Then, we held on to half the trade just in case bitcoin continued
higher.

By March 28 – just 10 days after we spotted the bullish setup in the bitcoin chart –
the “King of Cryptocurrencies” was trading for over $47,000 per coin. It had rallied
12% in just 10 days.

Shares of BITO were near $30 – showing a similar gain of 12% in 10 days.

However, our remaining call options were showing a 153% gain. So, we took the profit
on the remaining position. And we recorded a blended return of 113% on the total
trade.

Bitcoin and BITO both rallied about 12% in 10 days. That’s a respectable return for any
asset in any market. But, Jeff Clark Trader subscribers earned nearly 10 times that
return by trading call options on BITO in their regular brokerage accounts.

Of course, we can’t guarantee that every trade we make with BITO options is going to

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 be profitable. But, when we are on the right side of a move in bitcoin, BITO options are
going to generate a larger return than bitcoin or regular shares of BITO.

And, by using put options – options that rally as the price of an asset falls – we can
actually profit if bitcoin falls in value.

So, rather than trading bitcoin in one direction – which is all you can do if you trade
just the actual cryptocurrency itself – if the outlook for bitcoin turns bearish, we can
attempt to profit by buying put options on BITO.

This sort of trading wasn’t possible prior to October 2021. But now, we can trade
options on the ProShares Bitcoin Strategy ETF (BITO).

So, we have the chance to make up to 10X the return of a bitcoin move… no matter if
it goes up, down, or nowhere. And the entry price for any of the trades I recommend
in BITO options will be just a small fraction of what it would cost to buy bitcoin or BITO
shares.

With all this market volatility, we should see lots of chances to profit in the coming
months. So, be on the lookout for a new recommendation in the weeks ahead.

Best regards & good trading,

Jeff Clark

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