The Bull Booster Strategy targets capturing leveraged upside returns of bitcoin while maintaining the downside risk similar to an unleveraged buy-and-hold strategy. The strategy aims to accomplish its objectives by implementing a synthetic long position on bitcoin via cash-covered put options and call options on spot bitcoin ETFs through a zero-cost basis. If bitcoin’s market price rallies, the proactive management of the call options aims to capture and reinvest profits into additional call options contracts, thus boosting upside return potential.
WHY BULL BOOSTER STRATEGY?
Bitcoin's Return Potential During the 2024 Halving Cycle
Bitcoin is expected to undergo its next halving event in April 2024, an algorithmic occurrence which reduces the reward for mining new blocks thus decreasing the new supply. Bitcoin halving is historically associated with a scarcity effect that has resulted in a bullish market in 2012, 2016 and 2020. For investors, the proximity of the 2024 halving may present a timely opportunity. The Bull Booster Strategy, with its focus on leveraging bitcoin's potential upside, is particularly well-suited for investors looking to capitalize on this anticipated event.
Asymmetrical Risk to Reward Ratio
The Bull Booster Strategy aims to offer a unique risk-to-reward balance. While maintaining a downside risk profile similar to an unleveraged buy-and-hold strategy, it simultaneously aims to achieve leveraged upside returns potential through active management. With its innovative structure, the strategy also seeks to mitigate liquidation risk during volatile markets.
Systematic Active Management
The strategy's innovative structure and its systematic management of call options is designed to provide a tactical edge. Actively managing call options, especially in rising markets, allows for increased upside exposure. If bitcoin’s price rises, profits from these calls can be strategically reinvested into call options with higher strikes and additional contracts, enhancing potential returns.
WHO IS THIS STRATEGY FOR?
Investors who are bullish on bitcoin's performance, especially in the context of its upcoming halving cycle, and believe in its potential for price appreciation.
STRATEGY DETAILS
Management Fee
2%
Performance Fee
20%
Advisor
Virgo Digital Asset Management
Custodian
Interactive Brokers Canada
Asset Class
Options on, and/or bitcoin ETFs
Portfolio Manager
Kevin Jiang, CIO and Interim CEO
Investment Partners
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VDAM Multi-Strategy Digital Asset FundPrincipal Protected Momentum StrategyGlobal Digital Opportunities StrategyBull Booster StrategyVirgo Digital Asset Management Inc. NRD#70460 © 2025 Virgo Group of Companies. All rights reserved.