According to Odaily, a notable Bitcoin options trade was executed today, as reported by Lin Chen, Deribit's Head of Business for the Asia-Pacific region. The transaction involved a user purchasing call options for Bitcoin with a strike price of $115,000, set to expire at the end of January 2024. Simultaneously, the user sold call options with a strike price of $125,000, also expiring at the same time. This strategic move involved a total of 237.5 BTC on one side of the trade.
The user paid a premium of $935,000 for this options strategy. This type of trade, known as a call spread, is often used by investors to capitalize on potential price increases while limiting risk. By purchasing the lower strike call option and selling the higher strike call option, the trader aims to benefit from a rise in Bitcoin's price up to $125,000, while capping potential gains beyond this level. This strategy reflects a bullish outlook on Bitcoin's price movement in the coming months, with the trader anticipating significant price appreciation by the end of January 2024.
