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Do $100K–$300K Bitcoin call options signal a bullish BTC price path?

Derivatives exchanges now offer $100,000 to $300,000 Bitcoin call options but how keen are pro traders to take the bait?
The open interest on Bitcoin (BTC) Dec. 31 call options between $100,000 and $300,000 reached an impressive 6,700 contracts, which is currently worth $385 million. These derivatives give the buyer the right to acquire Bitcoin for a fixed price, while the seller is obliged to honor it.One might think that this is a great way to leverage a long position, but it comes at a cost and is usually quite high. For this right, the buyer pays an upfront fee (premium) to the call option seller. For example, the $100,000 call option is currently trading at 0.164 BTC, equivalent to $9,480.For this reason, option traders seldomly buy these options by themselves. Therefore, longer-expiry derivatives usually involve multiple strike prices or calendar months.Bitcoin options block trades. Source: Paradigm Telegram ChannelShown above is an actual trade arranged by Paradigm, an institutional investor-focused over-the-counter trading desk. In this trade, a total of 37 BTC Dec. $100,000 and $140,000 calls have been traded between two of their clients.Unfortunately, there’s no way to know which side the market maker was, but considering the risks involved, one should assume the client was looking for a bullish position.BTC Calendar Spread simulation. Source: Deribit Position BuilderBy selling the $140,000 call option and simultaneously buying the more expensive $100,000 call, this client paid a $138,000 upfront premium. This amount represents their max loss, which takes place at $100,000 price on Dec. 31.The red line on the above simulation shows the net …
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