Bitcoin: A $3.17 million bet on a rise could end up costing a lot for 100,000 $
The options market sometimes sets up scenarios that are complex to understand at first glance. A trader has just wagered $3.17 million on a rise in bitcoin, with a maturity date set for October 30. However, reaching $100,000 could cost him his entire initial investment. The position is aimed precisely at $95,000 and is based on a strategy that limits gains when the price exceeds certain levels. Here’s why this trade could produce an unusual outcome.
A trader bets $3.17 million using a bitcoin-related options strategy.
The position targets precisely a price of $95,000 by October 30.
A move toward $100,000 or higher could significantly reduce the expected profit.
The final result will depend on the settlement price at maturity, not simply on making a $100,000 move over time.
A bet on Bitcoin’s rise built around a precise level
The position was executed through Paradigm’s liquidity network, across five blocks. The trader has invested $3.17 million to build a combination of call options expiring on October 30. According to Laevitas data, the buyer acquired call options at the two outer strikes, while selling double the number of contracts at the intermediate level. This combination forms a strategy called a “long call butterfly.” The structure gives a central role to the $95,000 level.
This trade is based on three different strike prices: $90,000, $95,000, and $100,000. Therefore, it isn’t simply designed to profit from an unlimited upside move in bitcoin.
$BTC
$TREE
$B
#bitcoin
The options market sometimes sets up scenarios that are complex to understand at first glance. A trader has just wagered $3.17 million on a rise in bitcoin, with a maturity date set for October 30. However, reaching $100,000 could cost him his entire initial investment. The position is aimed precisely at $95,000 and is based on a strategy that limits gains when the price exceeds certain levels. Here’s why this trade could produce an unusual outcome.
A trader bets $3.17 million using a bitcoin-related options strategy.
The position targets precisely a price of $95,000 by October 30.
A move toward $100,000 or higher could significantly reduce the expected profit.
The final result will depend on the settlement price at maturity, not simply on making a $100,000 move over time.
A bet on Bitcoin’s rise built around a precise level
The position was executed through Paradigm’s liquidity network, across five blocks. The trader has invested $3.17 million to build a combination of call options expiring on October 30. According to Laevitas data, the buyer acquired call options at the two outer strikes, while selling double the number of contracts at the intermediate level. This combination forms a strategy called a “long call butterfly.” The structure gives a central role to the $95,000 level.
This trade is based on three different strike prices: $90,000, $95,000, and $100,000. Therefore, it isn’t simply designed to profit from an unlimited upside move in bitcoin.
$BTC
$TREE
$B
#bitcoin
