Bitcoin has made a significant move in recent days, rising above $87,000. Following this surge in $BTC, investors’ interest in taking long positions has also come to the forefront.
At this point, a trade by an options investor caught attention. As one of the most prominent trades in the Bitcoin options market in the last 24 hours, this trade indicates an expectation of a move towards $95,000 by the end of October.
Bitcoin Strategy to Reach $95,000!
According to Coindesk, citing Laevitas data, a notable options trade was executed in the Bitcoin market. The transaction, involving a premium payment of approximately $3.17 million, indicates a position taken on the Bitcoin price reaching around $95,000 by the end of October.
According to the data, the transaction was created using a strategy called “long call butterfly” in the options market. As part of the transaction, call options were purchased at strike prices of $90,000 and $100,000 for Bitcoin options expiring on October 30th, while call options at $95,000 were sold in double the quantity.
The report stated that the transaction was carried out in five separate blocks via Paradigm, and the total initial cost of the transaction was approximately $3.17 million.
It was also noted that, due to the nature of the Butterfly strategy, the position yields the highest return when Bitcoin is close to the $95,000 level at the expiry date. Accordingly, if the $BTC price remains between $90,000 and $100,000, the position can generate a gross positive return. Conversely, outside this range, the return from the transaction could drop to zero, and the investor risks losing approximately $3.17 million initially invested.
Speaking to Coindesk, Laser Digital analysts stated that following the recent rise, investor interest in bullish call options has increased, and short-term risk shifts have also favored call options.
However, this transaction does not necessarily mean that Bitcoin will definitely reach $95,000.
*This is not investment advice.