Traders Invest Over $7 Million in Ether Call Options for $6,000 Target
Crypto traders are focusing on ether following a recent price rally.
- Block traders executed bull call spreads on ether, buying $3,500 call options and shorting equal amounts at the $6,000 strike, both expiring on Dec. 26.
- This strategy was carried out via the over-the-counter platform Paradigm and listed on Deribit, totaling 30,000 contracts across 10 trades.
- The initial cost of this strategy was slightly over $7 million.
- Maximum profit occurs if ether reaches or exceeds $6,000 by expiration.
- As of now, ether's price is at $2,510.
- If ether remains below $3,600, the strategy will incur losses limited to the initial investment.
- Ether's price has risen over 80% since early April when it fell to around $1,390.
Market sentiment suggests potential bullish movement for ether, with possible catalysts including spot ETFs with staking rewards.