The PRO Service shorted Bitcoin via BITO puts on January 7th. At the time Bitcoin was trading around $41,500 and BITO around $26.40. Today Bitcoin is at $36,500 and BITO is at $22.90. The Feb 18th $25P, which was purchased at $2.10 is trading around $2.50. Although the put was as high as +128%, it is sitting right now at only +17%. In summary, the trade is up about $5,000 in Bitcoin, up about 13% in the underlying stock, but only up about 17% in the option. Not exactly why we trade options. On a 10% move in the underlying, we should be knocking out 100% on our options. Bitcoin topped last November 10th, followed by a trend model sell signal on Nov 22nd. Since then Bitcoin has lost about 40%. A rise above $40K (currently around $37K) is needed to set the stage for a reversal Long. We were late in getting short this time because of BITO being just gone public in November, otherwise the table above would be telling a different story.
