Several large and deliberate trades have been recorded recently, increasing this concentration of open interest to the $70,000 and $72,000 levels. Laevitas identified a significant bullish call spread structure, involving the purchase of the $70,000 call and the simultaneous sale of the $72,000 call.
The bull call spread, as the name suggests, bets on a moderate rise in the prices of the underlying asset, in this case, up to $72,000.
“The structure represents approximately 49% and 50% of the total call open interest at the strike prices of $70,000 and $72,000, respectively,” Laevitas noted.
Other notable trades include calendar spreads, a strategy used to take advantage of changes in short-term and short-term maturity volatility.
Another trader or group of traders purchased a large number of call options at $70,000, paying a $3.4 million premium to gain exposure to the upside.
Jimmy Yang, co-founder of Orbit Markets, an institutional digital asset liquidity provider, pointed to similar transactions, saying they were driven by Clarity Act optimism.
“Earlier this month, we saw decent demand for BTC topside calls, with the $70,000 and $72,000 July 31 strikes being particularly popular. Much of this positioning was driven by the expectation that the CLARITY Act could be passed before the end of the month,” Yang said.
