$3.2M Butterfly Spread Wagers Bitcoin at $95,000 by October 30
A substantial $3.2 million trade targeting a Bitcoin price of $95,000 by October 30 has been executed on Deribit. The trade is a sophisticated 'butterfly spread' strategy designed to pay off handsomely at one specific price point.
The trader bought one call option at a lower strike, sold two calls at a middle strike, and bought one more call at a higher strike. This creates a 'tent' structure where the payoff peaks sharply at the center and tapers off in both directions.
Bitcoin's current spot price has been oscillating between $85,000 and $86,000, with data showing a broader range of $81,000 to $86,000 over the past month. The $95,000 target represents an 11% to 12% move from current spot.
The trade is believed to be executed by institutional money rather than retail traders, as it requires a high level of sophistication and involves a large amount of capital.