Trader Pays $3.17 Million for Bitcoin Call Butterfly Targeting $95,000

A reported options position costing $3.17 million was built to profit most if Bitcoin settles at $95,000 on October 30. The structure, a long call butterfly, means that a larger rally could wipe out the entire upfront payment.

How the butterfly was constructed

According to Laevitas data, the trader executed the position through the Paradigm liquidity network in five blocks. The strategy combined three October 30 call options:

• Buy calls at a $90,000 strike
• Sell twice as many calls at a $95,000 strike
• Buy calls at a $100,000 strike

The net result is a long call butterfly with a maximum payout when Bitcoin closes at $95,000.

Risk profile of the trade

The butterfly’s payoff curve rises toward the middle strike and then declines as the price moves toward either outer strike. If Bitcoin settles at $90,000 or below, or at $100,000 or above, the trader loses the $3.17 million premium paid, plus any transaction costs.

Timing matters

The position does not settle until the October 30 settlement price is determined. Until then, its market value can fluctuate, and the holder could close or adjust the trade. Even if the payout at expiry exceeds the premium, the trader must still cover the initial cost to realize a net profit.

Unanswered questions

The public data does not reveal the trader’s broader portfolio. The butterfly could be part of a larger hedging or speculative strategy, so its isolated risk does not necessarily reflect the trader’s overall outlook on Bitcoin.