Bitcoin's (BTC) price rally may have stalled lately, but bullish conviction certainly hasn't, as whales continue to bet millions on an extended market rally.
Recently, one such whale executed a significant bullish options play targeting $200,000 by the year's end. The strategy involved the simultaneous purchase of 3,500 contracts of the Deribit-listed $140,000 December call option and the short sale (or writing) of 3,500 contracts of the $200,000 December call option.
This complex trade, a bull call spread, resulted in an initial net debit of $23.7 million. As Deribit Insights noted, “The Dec 140-200k Call spread dominates, buying low Dec 140k IV, funded by higher IV 200k Calls.”
The strategy will achieve maximum profit if BTC settles at or above the higher strike price, $200,000 in this case, by the expiration date.
This strategy generates a net debit because the premium paid for the lower strike call option (the purchase) exceeds the premium received from selling the higher strike call. The spread offers limited gains for a limited risk, capping upside at $200,000 while ensuring the maximum potential loss is contained to the initial debit.
Options are derivatives used for speculation or hedging against price movements. A call option gives the purchaser the right, but not the obligation, to buy the underlying asset at a predetermined price on or before a specified future date. A call buyer is implicitly bullish on the market, while a put buyer is bearish.
Bitcoin's spot price reached a record high of over $123,000 on July 14 and has since consolidated in a narrow range between $116,000 and $120,000.
Record options activity
BTC's price rally and growing institutional interest in structured products, which involve volatility selling, have boosted activity in the options market.
On Deribit, which accounts for over 80% of the global options activity, the BTC options open interest, or the number of open options contracts, was 372,490 BTC as of writing – just shy of the record high of 377,892 set in June.
Meanwhile, open interest in ether options has hit a record high of 2,851,577 ETH, according to data source Amberdata. On Deribit, one options contract represents one BTC or ETH.
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Omkar Godbole
https://www.coindesk.com/markets/2025/07/25/bitcoin-whale-wagers-usd23-7m-on-btc-rally-to-usd140k-usd200-k-by-year-end
2025-07-25 02:51:50
