What You Should Know:
- A trader has made a significant investment in BlackRock’s spot bitcoin ETF by buying 3,000 call options at a strike price of $77, signaling expectations of a price increase by June 27.
- This move is regarded as a high-confidence bet anticipated to react to strong market influences or as a safeguard against considerable risk exposure.
- The market for the IBIT options has shifted towards bullishness, marked by rising call prices relative to puts.
A bold investment in BlackRock’s spot bitcoin ETF (IBIT) emerged recently, indicating high expectations for a surge in the ETF price by the end of this month. The trader secured 3,000 contracts at a $77 strike price that is set to expire on June 27, spending around $39,000 for this optimistic stake.
This action underscores a bullish outlook as traders pay more for call options than for puts, suggesting a welcoming environment of optimism. The last recorded value of the ETF was $60.40, indicating a need for a more than 28% rise to reach the anticipated strike level.
Notably, an anonymous commentator, EndGame Macro, called this bet a potential catalyst, citing various scenarios that could lead to significant price movements before the call option expiration date. Traders are on alert as optimism returns to the options market with a reversal from the previous bearish sentiment.
