by Monta HONG, CFA | Options Strategist
Crypto stocks bled red Tuesday. The Senate blocked the Clarity Act on a 49–50 procedural vote, well short of the 60 needed, dashing the industry’s years-long, hundreds-of-millions-in-donations push for regulatory certainty.
As $iShares Bitcoin Trust (IBIT.US)$ fell 3.6% to $43.11, a whale bought about $5.75M of the December 2027 $42 calls and sold $4.59M of the $47 calls, 5,500 contracts on each leg. it’s one bull call spread, and it says something clear: trader is betting IBIT climbs back from $43 toward $47 over the next ~15 months.
Instead of naked-buying calls into a panic, trader sold the higher strike to fund most of the position, cutting their cost (and max loss) to about $1.16M, in…
