Ethereum (ETH) is in the interest of institutional investors. Last week, traders pumped no fewer than $ 7 million into an option construction that focuses on a $ 6,000 rate for ETH by the end of this year. The strategy was carried out via Paradigm and later noted on Deribit.
ETH has risen by more than 80% since April, from a low point around $ 1,390 to current levels. The strong course performance is fed by growing institutional trust, thanks in part to the possible arrival of spot ETFs with strike options. And the traders behind the position think that this is only the beginning.
Bull Call Spreads dominate the market
The strategy that matters is a so -called “bull call spread”. Investors buy call options with a lower exercise price (in this case $ 3,500) and at the same time sell the same number of calls with a higher exercise price ($ 6,000). Both options expire on December 26, 2025. This position offers limited risk, but also a draining efficiency.
A total of 30,000 of these types of spreads were traded, spread over ten transactions. The total bet amounted to more than $ 7 million. The maximum return is achieved if Ethereum is on or above $ 6,000 at the end of this year. At the time of writing, the ETH rate is around $ 2500, which means that the traders in question gamble on a significant increase.
A clear signal
Although the option strategy has a limited maximum loss, namely the initial amount of $ 7 million, a price below $ 3,600 can ensure that the options end worthless. At the same time, investors do not benefit from increases above $ 6,000, because the call options sold cover that potential benefit. Nevertheless, the size of the deployment speaks volumes: institutional parties are increasingly focusing on a strong recovery of ETH, with the emphasis on the fourth quarter of 2025.
Source: https://newsbit.nl/optiehandelaren-gokken-op-een-eth-koers-van-6000-in-2025/
