Bitcoin experienced a recent slide, prompting a potential buying opportunity for traders. The math of risk management suggests favorable reward/risk tradeoffs. Options collars can be used to play a Bitcoin comeback with limited risk. Three Bitcoin proxies analyzed include IBIT, BITX, and MSTR. Collar samples for each show various risk and reward ratios. IBIT offers a 2:1 ratio with 30% upside and 15% downside. BITX has over 50% upside potential with 16% downside risk. MSTR may not offer as much upside for a significant out-of-pocket cost. Using options for volatile assets like Bitcoin can provide structured, risk-managed trading opportunities.

Read more at Barchart: 3 Ways to Trade Bitcoin’s Big Comeback While Hedging Against a Permanent Crypto Winter