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A trader bets on a violent surge by the end of March, purchasing a long straddle BTC options portfolio.
On January 7th, according to on-chain analyst Ai Yi (@ai_9684xtpa), a trader is betting on a violent wave of volatility by the end of March. The trader bought 660 BTC call options worth $120,000 (approximately $860,000) and 660 BTC put options worth $80,000 (approximately $1.5 million), both set to expire on March 27, 2023. The trader is employing a pure volatility strategy: betting that BTC prices will experience significant fluctuations by the options’ expiration date, profiting whether the price moves up or down. If, at expiration, BTC’s price fluctuates slightly within the $80,000 to $120,000 range or remains sideways, the trader will incur a loss, with a maximum loss of the entire premium of $2.36 million.