Weekly Trade Recommendations for Friday 07 February, 2025

Weekly Bitcoin Options Strategy: Bull Call Spread for February 14, 2025

In the current market environment, we're seeing a blend of bullish and cautious signals. Bitcoin closed yesterday at $96,567.83, and while ETF inflows have shown a slight decrease in the short term, there has been a strong upward trend over the last 30 days, suggesting growing institutional interest. The ETF pressure data indicates a bullish sentiment, with demand outpacing the supply of newly-minted coins.

Additionally, the 25-Delta Weekly Options Skew of 0.05 highlights a shift towards more expensive puts, which often reflects a market expectation of potential price stabilization or mild bearishness. However, the negative monthly skew suggests that the longer-term outlook remains bullish.

Given these insights, a Bull Call Spread is a strategic choice for this week. This spread involves buying a call option at a lower strike price and selling another call option at a higher strike price, both expiring on February 14, 2025. This strategy allows us to capitalize on a moderately bullish outlook while limiting potential losses.

Why a Bull Call Spread?
1. Bullish Indicators: The longer-term negative skew and ETF pressure data hint at a bullish outlook, supporting an upward move.
2. Risk Management: This strategy provides a defined risk, as the maximum loss is limited to the initial premium paid.
3. Cost Efficiency: Selling a higher strike call offsets the cost of buying the lower strike call, making it a cost-effective bullish play.

This balanced approach allows us to potentially profit from Bitcoin's positive momentum while keeping risk in check, aligning with our goal of low-risk, high-efficiency weekly trades.

### Summary of the Play
- Strategy: Bull Call Spread
- Expiry Date: February 14, 2025
- Strike Prices: 97000, 98000