Traders Place Big Bets on Ether for Second Half of 2023

Ether, the token of the Ethereum blockchain, jumped 61% in the first six months of the year. Traders are now betting the rally could extend in the second half. On Friday, an investor purchased roughly 63,250 “bull call spreads” tied to ether and due for expiry on Dec. 29, according to data source Amberdata. The trade involved the sale of a call option at the $2,500 strike price to partly fund the purchase of a call option at the $1,900 strike. The strategy cost an initial $10 million because the trader entity shelled out more to buy the $1,900 call than they received from selling the $2,500 call. A call buyer gets protection from the seller against price rallies. In return, the seller receives an upfront premium from the buyer.