True Cheat Code?

u/kalmus1970 · Reddit — r/thetagang · January 07, 2026 at 00:54 · ⬆ 1 pts  | View on Reddit ↗
AI Summary

Original Reddit comment

Commenter critiques a proposed BITO options strategy, arguing the ETF's dividend payments are funded by selling holdings, driving its price down, and that option spreads make the plan impractical.

BITO — AVOID The author argues that BITO is a poor holding because its high dividend yield is funded by selling its own holdings, which causes the ETF's price to trend downward. The bid-ask spreads on BITO options are also wide relative to the underlying's price, making an options strategy costly. If Bitcoin rallies sharply, the bearish view could be wrong and the ETF may benefit.

That's why this stock is going straight down.

Score 1
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u/kalmus1970 Reddit r/thetagang
BITO's dividend funded by selling holdings causes decline
The author argues that BITO is a poor holding because its high dividend yield is funded by selling its own holdings, which causes the ETF's price to trend downward. The bid-ask spreads on BITO options are also wide relative to the underlying's price, making an options strategy costly. If Bitcoin rallies sharply, the bearish view could be wrong and the ETF may benefit.
More from Reddit — r/thetagang

This Reddit post, published January 07, 2026, features u/kalmus1970 discussing BITO. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/kalmus1970  · Tickers: BITO