A trader put $3.17 million into a "long call butterfly" options structure betting Bitcoin settles near $95,000 by October 30. The position profits most if Bitcoin lands at that exact strike, while broader options-market activity points to growing bullish positioning as the asset trades near $85,000.
A trader executed a long call butterfly via the OTC desk Paradigm in five blocks, each consisting of 1,000 long $90,000 calls, 2,000 short $95,000 calls and 1,000 long $100,000 calls, according to CoinDesk, citing data source Laevitas. Crypto Briefing separately reported the trade was executed on Deribit, the dominant venue for crypto options.
How the butterfly trade is structured
The trader bought Oct. 30 expiry calls at $90,000 and $100,000 while simultaneously selling twice as many $95,000 calls, for a net initial payment of $3.17 million. The strategy pays off most if Bitcoin sits near $95,000 at expiry and has a positive gross payoff between $90,000 and $100,000. Outside that range, the payoff is zero and the trader stands to lose the full premium paid.
Bitcoin's spot price has been oscillating between $85,000 and $86,000 in recent sessions, with a broader range of $81,000 to $86,000 over the back half of September, Crypto Briefing reported. That puts the $95,000 target roughly 11% to 12% above current spot.
Options market shows broader bullish positioning
The butterfly was not an isolated bet. More than 22,000 contracts have changed hands for the 30OCT26 $95,000 call option alone, contributing to roughly $1.9 billion in notional trading volume over a recent 24-hour window, according to Crypto Briefing. Open interest and call volume between the $85,000 and $100,000 strike range have been climbing steadily through September and into October.
Traders also increased demand for upside exposure through call options, pushing short-term risk reversals higher, CoinDesk reported. According to Laser Digital: "front-end RRs flipping aggressively in favour of calls during the move up to $85K".
Bitcoin's technical picture
BTC's Monday candle closed well above its May high, topping key resistance to mark another bullish breakout, CoinDesk noted, with the next resistance marked by the January high above $98,000. CoinDesk reported that Bitcoin is trading well above its 50-, 100- and 200-day moving averages, a bullish configuration. As a result, dealers who sold the clustered calls between $85,000 and $100,000 may need to buy Bitcoin in the spot market to hedge their exposure if the rally continues, a dynamic known as a gamma squeeze that can accelerate the move.
Sources: CoinDesk, Crypto Briefing
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