The Triple Play I’m Running on IBIT

May 27, 2025

Hey Traders,

Hope you had a good Memorial Day weekend — and took a minute to honor those who served.

Now let’s talk about something I’m fired up about right now: IBIT.

It’s not just a trade, though… It’s a triple-play setup I’m using myself, and I think it’s worth walking through.

What’s IBIT — And Why It Matters

If you’ve been watching crypto or Bitcoin, you’ve probably heard of tokenization — the idea of turning an asset into a tradable token on the blockchain.

Well, what we’ve seen with IBIT is what I call the marketization of an asset.

Before IBIT launched, you couldn’t really trade pure Bitcoin on a regulated U.S. exchange like the NYSE or NASDAQ.

You had to mess around with proxy products like BITO or weird leveraged versions — not the real thing.

But IBIT changed all that.

Now, when money flows into IBIT, the trust behind it goes out and buys actual Bitcoin. No smoke, no mirrors. Just a straight-up ETF that tracks Bitcoin — and does it right.

That means we can now trade Bitcoin’s volatility in the regular stock market.

And now that options have been listed on IBIT?

That opens the door to a whole world of opportunity.

1) I’m Long IBIT (Here’s Why)

First off — I own the stock.

Why?

Because I believe in the future of Bitcoin.

Adoption is growing, more countries are exploring it, and more big money players are getting their clients exposure through products like IBIT.

Just the other day, I was on a call with a group of money managers — and they’re finally starting to catch up. Their clients are demanding crypto exposure, and IBIT is the easiest way for them to get it.

So for me? Being long the stock makes sense.

But that’s just the beginning…

2) I Sell Naked Puts on IBIT

This is one of my favorite ways to generate income.

A naked put is a way to get paid for making a promise.

Let’s say IBIT is trading at $62.50. You could sell a put at $59 and get paid a premium — just for being willing to buy the stock at that lower price.

If IBIT never drops to $59? You just keep the premium.

If it does drop and you get assigned the stock at $59? Your cost basis is even lower because of the premium you collected.

Either way — you win.

And because IBIT is so volatile (more on that in a second), the premiums on these puts are juicy.

3) I Sell Covered Calls on IBIT

This is the other side of the coin — and another way I pull cash out of this thing.

IBIT has a beta over 2, which means it’s twice as volatile as the market. That high volatility pumps up option premiums — and that’s great news for us option sellers.

If you own 100 shares of IBIT, you can sell a covered call — which is just a promise to sell the stock at a higher price later. (think of it as the opposite of a naked put)

Rule of thumb: I usually pick a strike 10–15% higher than my purchase price, and I’ll go out 30–40 days on the expiration.

If the stock hits the strike, you sell at a profit.

If not? You keep the premium and do it again.