Renowned research firm 10x Research has unveiled a lucrative investment strategy for Bitcoin enthusiasts, dubbed the "covered strangle" approach. This innovative tactic involves selling out-of-the-money (OTM) call and put options while holding the underlying asset, generating additional income through premiums. By adopting this strategy, investors can capitalize on Bitcoin's slow yet steady growth, ideal for a bullish market outlook.

The covered strangle strategy requires selling an OTM call option at a strike price above the current market rate and an OTM put option at a strike price below the current market rate. 10x Research recommends selling a $100,000 call option and a $50,000 put option, both expiring in December 2024. This approach can yield a total return of 17% in addition to the gains from holding Bitcoin in the spot market.

While this strategy offers potential profits, it's crucial to acknowledge the risks involved. The primary risk lies in the put option's strike price of $50,000 being breached, resulting in losses for both the spot position and the short put option. Investors must have a high tolerance for risk and believe in Bitcoin's slow and steady growth, with corrections not pushing prices below $50,000.

Currently, Bitcoin is trading around $67,000, representing a 58% gain since the beginning of the year. Analysts, including 10x Research's Markus Thielen and former BitMEX CEO Arthur Hayes, anticipate a slow and steady rise in Bitcoin's price. By adopting the covered strangle strategy, investors can potentially unlock Bitcoin's full potential while managing risks.