Bullish bets on price movements
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Ex: TAO is at $323 in a local AI coin bear market, down from its $757 ATH, with the next pump’s timing unclear. Leveraging TAO directly risks liquidation if it dips further (e.g., to $300). Instead, buy a call option: $425 strike, March 31, 2025 expiry (1 month), $30/TAO premium. For 500 TAO, you pay $15,000.
If TAO pumps to $475 by March, you exercise, buying at $425 and selling at $475—net 66% return. If it stagnates or drops, you lose only $15,000, not your full stake. Safer than outright leverage, perfect for uncertain timing.