The Options Strategies feature on the Bybit App offers customizable trading presets to easily invest in bull and bear options markets. With this feature, you can create vertical options spreads by simultaneously buying and selling options of the same type, through simple operations.
Here’s a step-by-step guide to building your strategies with Options Strategies on Bybit.
Choose Your Strategy
Examples
Bull Call Spread
Bull Put Spread
Bear Call Spread
Bear Put Spread
Create Your Strategy
View Your Strategy
Close Your Strategy
To get started, go to Trade at the bottom of the page and tap Options in the top navigation bar.
By default, you will be redirected to the Easy Options page. To enter the Options Strategies page, tap the Easy dropdown menu on the top right corner, select the Pro mode, and then switch to the Strategies tab.
For first-time users, tap Next to view the novice guidance process, including Choose Strategy, Choose Strategy Mode, Manage Strategy, and View Order Details.
Choose Your Strategy
On the Options Strategies page, you can view the corresponding information by selecting different sections as follows:
a. Active Strategy: View and manage active options strategies
b. Strategy History: View your historical options strategy records
c. Strategy Guide: View detailed information on all supported strategies, including an introduction to applicable scenarios for each strategy, a profit and loss graph for each strategy, and the profit and loss when the strategy expires at different underlying prices.
Tip: You can view the details on each strategy card, including strategy introduction, total investment and total number of investors.
Currently, there are four strategies for users to choose from, namely Bull Call Spread, Bull Put Spread, Bear Call Spread and Bear Put Spread. Details are as follows:
Notes:
— Spread width refers to the difference between the buy and sell strike prices in a Call or a Put options strategy. Please refer to the examples for more details.
— In a net debit strategy, the premium paid is greater than the premium received upfront to enter the trade.
— In a net credit strategy, the premium received is greater than the premium paid upfront to enter the trade.
Examples
The examples below are for illustrative purposes only and exclude any associated fees, such as trading fees, delivery fees, etc.
Example 1 - Bull Call Spread
Assume the current price of BTC is $60,000, and the trader holds the following options contracts:
Formula
Net Debit = Premium Paid – Premium Received
= $1,000 – $800 = $200 per contract
Breakeven Price = Lower Strike Price + Net Debit
= $60,000 + $200 = $60,200
Best-Case Scenario:
At expiration, BTC trades at $66,000. The spread gains $3,800 in profit, based on the following calculations:
Formula = (Higher Strike Price – Lower Strike Price) – Net Debit
= ($64,000 – $60,000) – $200
= $3,800
Worst-Case Scenario
At expiration, BTC trades at $57,000. Given that both calls are OTM (market price ≤ strike price), the contracts cannot be exercised. Thus, the maximum loss only amounts to the initial net debit, which is $200.
Example 2 - Bull Put Spread
Assume the current price of BTC is $60,000, and the trader holds the following options contracts:
Formula
Net Credit = Premium Received – Premium Paid
= $2,000 – $500 = $1,500 per contract
Breakeven Price = Higher Strike Price – Net Credit
= $60,000 – $1,500 = $58,500
Best-Case Scenario:
At expiration, BTC trades at $60,000. Given that both puts are OTM (market price ≥ strike price), the contracts cannot be exercised. Thus, the maximum profit amounts to the initial credit received, which is $1,500.
Worst-Case Scenario
At expiration, BTC trades at $57,000. The spread incurs $500 loss, based on the following calculations:
Formula = (Higher Strike Price – Lower Strike Price) – Net Credit
= ($60,000 – $58,000) – $1,500
= $500
Example 3 - Bear Call Spread
Assume the current price of BTC is $60,000, and the trader holds the following options contracts:
Formula
Net Credit = Premium Received – Premium Paid
= $2,000 – $500 = $1,500 per contract
Breakeven Price = Lower Strike Price + Net Credit
= $60,000 + $1,500 = $61,500
Best-Case Scenario:
At expiration, BTC trades at $60,000. Given that both calls are OTM (market price ≤ strike price), the contracts cannot be exercised. Thus, the maximum profit amounts to the initial credit received, which is $1,500.
Worst-Case Scenario
At expiration, BTC trades at $65,000. The spread incurs $2,500 loss, based on the following calculations:
Formula = (Higher Strike Price – Lower Strike Price) – Net Credit
= ($64,000 – $60,000) – $1,500
= $2,500
Example 4 - Bear Put Spread
Assume the current price of BTC is $60,000, and the trader holds the following options contracts:
Formula
Net Debit = Premium Paid – Premium Received
= $2,000 – $500 = $1,500 per contract
Breakeven Price = Higher Strike Price – Net Debit
= $60,000 – $1,500 = $58,500
Best-Case Scenario:
At expiration, BTC trades at $55,000. The spread gains $2,500 in profit, based on the following calculations:
Formula = (Higher Strike Price – Lower Strike Price) – Net Debit
= ($60,000 – $56,000) – $1,500
= $2,500
Worst-Case Scenario
At expiration, BTC trades at $61,000. Given that both puts are OTM (market price ≥ strike price), the contracts cannot be exercised. Thus, the maximum loss only amounts to the initial net debit, which is $1,500.
Create Your Strategy
Step 1: Once you have assessed all the relevant information, tap your preferred strategy card to continue to the Create Strategy page.
If you are new to Options Strategies, a Risk Warning notice will appear. Carefully read the notice and tap Got It to proceed.
Note:
The execution of the strategy depends on whether there is enough liquidity (bids and offers) in the market. Under extreme market conditions, lack of liquidity may cause strategy creation to fail.
Step 2: The Create Strategy page allows you to view the profit and loss graph, maximum profit, and margin required for the generated strategy.
On this page, you may set your order parameters based on the two following modes:
a. Default Mode
Default Mode is suitable for beginners in options trading.
In Default Mode, the system will automatically help you set the coin, the strike price and expiration date.
If you wish to change the selected Coin, Strategy, and/or Expiration Date, please tap the dropdown menu in each column. Please note, however, that the strike price will be set based on market conditions and cannot be modified.
b. Pro Mode
Pro Mode is suitable for investors with experience in options trading. On the Create Strategy page, default strategy parameters are provided.
You can edit the following parameters as needed:
- Coin: Select the underlying asset of the options
- Strategy: Select your preferred options strategy
- Exp. Date: Set the date your options contract expires
- Strike: Set strike prices for two options
Step 3: Once you have set the order parameters in your preferred mode, adjust the quantity you wish to purchase in the Qty section, if necessary.
Notes:
— The available options trading pairs have different default quantities, and you can freely set the amount in both the Default Mode and Pro Mode. However, switching back from Pro Mode to Default Mode will reset your order parameters and purchase quantity.
— To transfer funds into your Unified Trading Account, please tap Transfer.
— Under Portfolio Margin Mode, your margin can not be calculated before you submit your order.
Step 4: Tap Create Strategy and review all your order details before hitting Confirm. Your options strategy will be executed as a market order.
View Your Strategy
You can view your current strategy details under Active Strategy. These include Realized Cash Flow (sums of premiums paid and received), Unrealized P&L for all active strategies, and information on each strategy.
To learn more about your strategy, tap Details on the bottom left of the active strategy card.
Alternatively, you can view the details of your long and short positions under the Positions tab on the Pro trading page.
Close Your Strategy
Please head to the Active Strategy page, and tap Close By. Once you make sure all the information is correct, tap Confirm.
Your options strategy will be closed with a market order. Note that under extreme market conditions, illiquidity in the market may cause closing strategies to fail.
Closed options strategies can be viewed under Strategy History. Locate the strategies you wish to view by setting coin and/or time filters.
You can also view historical strategy details, including realized P&L for all historical strategies, under Strategy History. To learn more about your historical strategy, please tap Details.