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$10M Options Bet on Ether: Positioning for a Bullish Second Half of 2023

Ether (ETH) has experienced a significant 61% surge in the first half of the year, prompting traders to place bets on the token’s continued rally in the second half. Recent data shows that a large investor purchased approximately 63,250 “bull call spreads” tied to ether, indicating a positive outlook for Ethereum, the world’s largest smart-contract blockchain. The strategy involved the sale of a call option at the $2,500 strike price, offsetting the purchase of a call option at the $1,900 strike, with an initial cost of $10 million.

Greg Magadini, Director of Derivatives at Amberdata, noted the significance of this strategy and highlighted the chosen strike prices as indicative of a strong bullish sentiment towards ether. Bull call spreads, known for limiting potential losses and profit, are popular in both traditional and crypto markets.While the profitability of the strategy depends on the price of ether rising, the buyer’s expectation of a gradual price increase over the next six months does not guarantee an ether rally.

With ether trading at $1,966 at the time of writing, the highest since May 6, there is growing anticipation for a potential explosive move higher. Matrixport, a crypto services provider, suggests that ether is poised for a notable upward movement and could catch up with bitcoin, which experienced an impressive 85% rally in the first half of the year.

The options market overall exhibits a bullish bias for both ether and bitcoin, reflected in positive short-term and long-term call-put skews, which measure bullish sentiment relative to bearish puts.

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