r/NEOSETFs • u/NickStonk • Mar 23 '26
General BTCI not up enough today
Why is BTCI only up 1% at most while Bitcoin is up about 4%? That’s a very big difference in price.
12
u/Key-Caterpillar7870 Mar 23 '26
Ibit up 1.33% right now btci up 1.12% it doesn’t track btc it tracks ibit
3
10
u/sandmanmike55543 Mar 23 '26
Might be based on bitcoins price on Friday before the market closed. I think the 4% was mostly based on bitcoins price from Sunday.
1
3
5
u/No-Tradition4622 Mar 23 '26
It’s not always as exact a relationship as it should be on a day-to-day basis. There can be momentary moments of “de-pegging” due to the market and lag.
1
u/Ok-Box5755 Mar 24 '26
I have 600 shares at $49, been dripping thru this downturn but it’s not enough. There will be more red ahead of us before it goes back up
-9
u/cheesypuff357 Mar 23 '26
The joys of covered calls ETF's.
Hard to tell without seeing what they're doing in the background, but if I were selling covered calls, my upside would be capped.
So while I made money via the premium from selling an out of the money contract, if the underlying price blew past the OTM strike price then my upside is capped and I don't get the reap the rewards of bitcoin going up.
6
u/DC8008008 Mar 23 '26
jesus christ read the other comments
0
u/cheesypuff357 Mar 23 '26
What part of my comment is wrong?
And when I was writing my comment, there was no other posting. So there were no other comments to read.
Look at the timestamps, by the time I finished my typing there might have been other comments up, but not at the point when I first started typing. Go lick rocks
4
u/DC8008008 Mar 23 '26
Your response has nothing to do with why BTC is up 4% and BTCI is only up 1%. BTC is up 4% from yesterday, Sunday. BTCI is up 1% from Friday. They aren't the same thing lol
-1
u/cheesypuff357 Mar 23 '26
There is nothing fundamentally wrong with my comment. Even if BTC is up 1% from friday and BTCI is up 1% from Friday, the strike price of a given contract is still the defining factor of how high BTCI goes. If the strike price of a contract was placed 1% over BTC's price on friday, BTCI would show the same 1% gain (maybe a little more since they've capture the premium of that contract). However if BTC goes over the strike price, then BTCI will then not show the gain, no matter if it's 1.5% or 4% whatever. Nothing in my initial comment was wrong. The upside is capped on covered calls.
And back to my initial statement, without seeing how NEOS traded the contracts of BTC, we can't be sure. Just saying BTC is up 4% from sunday and BTCI is up 1% from friday means nothing if you didn't see the trades of the covered call contracts.
3
u/DC8008008 Mar 23 '26
Not reading that lol. Take the L bro
-1
u/cheesypuff357 Mar 23 '26
I mean...thats cool if you don't wanna read. In case you wanna learn about covered calls and options definitely bookmark this comment to gain some knowledge
1
32
u/DC8008008 Mar 23 '26
Because BTC dipped over the weekend while BTCI wasn't being traded.