Bitcoin: $3.17 million at stake... and $100,000 could change everything

The options market sometimes presents scenarios that are difficult to understand at first glance. A trader has just bet $3.17 million on a rise in bitcoin, with an expiration set for October 30. However, reaching $100,000 could cost him his entire initial stake. The position targets precisely $95,000 and relies on a strategy that limits the gain when the price exceeds certain levels. Here is why this operation can produce an unusual outcome.

In brief

A Bet on Bitcoin’s Rise Built Around a Precise Level

The position was executed via the Paradigm liquidity network in five blocks. The trader committed $3.17 million to build a combination of call options expiring on October 30. According to Laevitas data, the buyer took call options at the two outer levels while selling twice as many contracts at the intermediate level. This combination forms a strategy called “long call butterfly options.” The setup thus gives a central place to the $95,000 level.