Bitcoin options traders are selling bear spreads without fear, eyeing BTC rally to $30,000
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- BTC options traders are selling $22,000 put trades in BTC to buy calls above $25,000 and near $30,000.
- The move by nearly a quarter of the total volume of BTC options traders implies that large players expect Bitcoin to close the month profitably.
- Traders are selling bear spreads without fear while predicting a swing of 10% or higher in Bitcoin price in September.
Options market data can typically offer insights into price movements of Bitcoin. BTC options allow traders to speculate the price of Bitcoin and use the investment product to leverage or hedge their existing trading positions. Analysts at options trading tool Greeks.live evaluated BTC options data recently.
Early on Thursday, the platform noted large put options (right to sell at a predetermined price) transactions in Bitcoin and shared insights on the same. The data implies that large players in the BTC options market are safely selling bear market spread and expect the asset to close September at a profit.
Bitcoin options data reveals bullish sentiment among traders
Analysts at Greeks.live have noted two types of large put option transactions in BTC, as of Thursday:
- Selling $22,000 put to buy a call (right to buy at a predetermined price) above $30,000
- Selling $22,000 put to buy a put (right to sell at a predetermined price) near $25,000
The above two type of transactions currently account for nearly a quarter of the BTC options trade volume monitored by the tool. These insights from BTC options data imply that traders expect Bitcoin price to rise from the current level ($25,673 on Binance) and close September at a profit.
BTC option flows
Adam, a macroeconomic researcher at Greeks.live believes that the above data reflects that large investors believe that a possibility of a decline in Bitcoin price is relatively small in September. With this confidence in Bitcoin price recovery, traders are selling their bear market spread and puts at $22,000 for $25,000 and $30,000.
The researcher shared his personal opinion that market makers are trying to save cost while closing puts at $22,000 and expect a 10% or higher gain in Bitcoin in September. A rally in Bitcoin would turn these traders’ positions profitable this month.
