A large bitcoin (BTC) options trade executed on Deribit early Wednesday anticipates a shift from the present low volatility regime to a period of heightened price swings, potentially exceeding the $53,000-$87,000 range.
A long straddle is preferred when the market is expected to move far enough in either direction to make the call or the put option worth more than the cumulative premium paid.
For the strategy to turn profitable and overcompensate for the premium paid, the bitcoin price needs to move either above $87,000 or below $53,000 by the end of November.
The trade will bleed money if the price remains between those levels till the end of November, with the maximum loss being the $1 million premium paid.
Collection
[
|
...
]