Trader Purchases 3,000 Call Options for BlackRock’s Spot Bitcoin ETF
A trader acquired 3,000 contracts of the BlackRock spot bitcoin ETF (IBIT) $77 strike call option expiring on June 27 for a total premium of $39,000. This indicates expectations for a price increase in the ETF, which closed at $60.40, suggesting a target rally of over 28% by expiration.
The call option allows the buyer to purchase the asset at a predetermined price, reflecting bullish sentiment. Analysts noted that this bet may be linked to anticipated catalysts like increased inflows into the ETF or favorable regulatory developments.
Market Sentiment
- The IBIT options market showed a shift towards bullishness, with the one-year put-call skew turning negative.
- This change indicates that calls are trading at a higher cost compared to puts, suggesting growing optimism.
- The bullish trend follows a period where puts were more expensive, indicating past downside concerns.