In its latest report, Cryptocurrency Options Analysis Company Greekslive announced that the largest block option transaction ever occurred in the Bitcoin market.
The transaction saw a total concept value of $1.19 billion, opening a position of 11,350 BTC, and only paid $7.5 million in premiums.
A block transaction consists of two parts.
- First, with a bullish spread of 3,800 due to its September maturity, investors are expecting an increase in both price and volatility in the long term.
- Secondly, sales of the June maturity (ATM) call options were carried out. The sale, along with the September purchase, creates a calendar spread, indicating a limited short-term (June) bullish expectations.
Greekslive summarized the process as follows:
“This optional block transaction is around $1.2 billion, indicating that the June upward movement could be limited, but it shows a strong upward potential of up to 50% in the third quarter.”
BTC prices are trading around 7% lower than the all-time high of $111,970 at the time of writing.
*This is not investment advice.