Bitcoin futures and options have been available to investors for nearly four years. In that time, many traders have seem big profits, especially for those who use certain strategies. In the beginning, some investment banking professionals believed that futures contract would bring about a lot of damage to the price of Bitcoin, but that has not really been the case. If anything, Bitcoin prices have been posting record trading volumes and trading levels, thus prompting some market analysts to believe that BTC/USD could reach $K this year.

The trading of futures and options in the world's most valuable digital currency done using a series of electronic contracts that are not tied to Bitcoin wallets. The trades made on the virtual exchange managed by the Chicago Mercantile Exchange are legally binding within the period in which they are valid, but they can also expire with a worthless status because contract holders do not really have skin in the game. In other words BTC futures and options traders do not hold tokens and are just speculating on the direction the market will take.

With all the above in mind, market observers have noticed that some BTC options traders are being quite shrewd with regard to the positions they take. A strategy involving several short contracts is proving to be successful for many active traders who are essentially replicating what they see on the cryptocurrency exchange platforms. What is interesting about this strategy is that it is actually bullish despite being formulated with put contracts that bet on Bitcoin pullbacks.

In the case of CME BTC futures, for example, they seem to be using the BTC pullback as a bullish indicator. In this case, the pullback is a sell contract, but there is certainly no reason to believe that this retraction is not in fact in a bullish direction. If anything, this indicator signals an intent to rake in profits as investors wait for the rest of active traders to cash in on their positions. Futures traders simply wait for the buy cycle to start again so that they can write more put contracts, which by now are pretty much guaranteed because active traders do not stay in the market for very long.