Most Bitcoin options traders lose money. Not because the instrument is too complex, but because they trade it without a framework.

Since the ETF approvals, Bitcoin options volumes have outpaced spot trading growth. A new wave of traders is entering the market underprepared for what they’re trading.

We just published a 23-rule Bitcoin options playbook, a framework I was first taught as an index options trader at Morgan Stanley and have since adapted for Bitcoin’s unique dynamics.

The 23 rules are structured in three layers:

🔹 Rules 1–10 — The Foundation

Implied volatility, term structure, skew, theta, delta, spreads, liquidity, IV crush, position sizing, and rolling. The concepts every options trader needs before placing a single trade.

🔹 Rules 11–16 — Market Mechanics

Gamma, quarterly expiries, and how dealer delta hedging creates mechanical, non-discretionary price pressure in spot. Miss this layer and the market will move against you in ways that feel random but aren’t.

🔹 Rules 17–23 — The Edge Layer

How to read the full volatility surface, the realized vs. implied vol spread (the most repeatable edge in options), and why averaging down on a losing option is nothing like averaging down on spot.

One widely-cited statistic worth clarifying: studies show 75–80% of options held to expiration expire worthless. That does not mean options traders lose money most of the time. It means undisciplined traders do. The traders on the right side of that statistic are not smarter or luckier — they follow the rules.

The full report is available to all 10x Research subscribers, downloadable and printable. If you want the 1-10 point 'Foundation' overview, comment "Options" and we will send it to you, part 1 of this report.