A trader has placed a significant bet on Bitcoin's volatility by purchasing a long straddle options combination on Deribit, according to on-chain analyst Ai Yi. The trader acquired 660 BTC call options at $120,000 and 660 BTC put options at $80,000, both expiring on March 27. This strategy, costing approximately $2.36 million in premiums, anticipates a substantial price swing by the end of March, allowing for profits if Bitcoin's price moves significantly in either direction.
The trader's approach hinges on Bitcoin experiencing a volatile market, as profits are possible regardless of whether the price rises or falls. However, if Bitcoin's price remains stable within the $80,000 to $120,000 range at expiration, the trader risks losing the entire premium paid.
Trader Bets on Bitcoin Volatility with $2.36M Options Straddle
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