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Investors use collar options strategy on Bitcoin ETF to limit losses and generate income amid price drop.

Market News
12 Jun 2026
24/7 Wall Street
View Source
Neutral
pluang ai news

Bitcoin has dropped below $62,000, marking a bear market phase. Some investors protect their Bitcoin exposure by holding shares of the iShares Bitcoin Trust ETF (IBIT) and using a collar options strategy, which combines buying a protective put and selling a covered call. This approach limits downside risk while potentially generating income to offset hedging costs. The trade-off is capped upside if Bitcoin rallies, but it offers a way to manage risk during volatile market conditions.

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