Option data: Short-term IV rises above 80%, with bulk trading exceeding 800 million US dollars

According to Greeks.live, last night, as Bitcoin broke through the $60,000 mark, the short-term implied volatility (IV) exceeded 80%, with a large volume of over 13,000 contracts traded and a nominal value exceeding $800 million. The largest transaction was a butterfly spread option combination worth over $100 million in total:

Sell 100x BTC-29MAR24-65000-C

Buy 200x BTC-29MAR24-60000-C

Sell 100x BTC-29MAR24-55000-C

The intention of this combination is very clear. In an extremely FOMO market sentiment situation, Bitcoin will only have two trends: either breaking out to new highs or failing at the high and reversing downwards.

Whales believe that the probability of Bitcoin trading sideways at the current price level is very low. Moreover, this three-legged combination perfectly balances premium payments and represents a sophisticated trading technique.