Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Bitcoin Options Traders Betting on $200K by End of 2021

Bitcoin Options Traders Betting on $200K by End of 2021

Some bitcoin options traders are making bold wagers, betting on a rally to a six-figure price by year end, despite the top cryptocurrency continues to struggle following last month’s 35% drop.

According to data provided by Laevitas, the dominant cryptocurrency options exchange Deribit saw a total of 425 bitcoin (BTC) call option contracts, with a strike price of $200,000 and an expiration date of Dec. 31, change hands on Thursday. That strike price is roughly five times the current level.

A call option is a derivative contract that gives the purchaser the right but not the obligation to buy the underlying asset at a predetermined price on or before a specific date. Theoretically, buying a call at the $200,000 strike expiring on Dec. 31 is a bet that the cryptocurrency will end the year above that level.

While the trade size is relatively small compared with similar gambles that the wagers are still interesting for several reasons. To begin with, the $200,000 call options represent a long-term bet, with an expiration date a full six months away.

And because the options are so far out-of-the-money (strike well above the spot market price), they are extremely cheap, currently trading at 0.018 BTC ($698) on Deribit.

That makes the options the equivalent of a lottery ticket: Buyers stand to lose just $698 per lot if the market doesn’t move higher until Dec. 31. But the option would theoretically gain significant value if the bullish mood returns to the market.

Such low-risk gambles are commonly observed during bull runs. For instance, traders piled into the $80,000 call option in March, when bitcoin was on a strong upward trajectory and trading at highs above $50,000.

Bitcoin rose to an all-time high of nearly $65,000 in April, but the price has since tumbled and now appears to be consolidating under $40,000. At press time, the largest cryptocurrency was changing hands at around $37,500.

Recently, the market has been filled with doom and gloom. However, of all the options listed on Deribit, the $100,000 call is the most popular, with an expiry-wide open interest of 9,000.

Broadly speaking, however, the options market has a bearish bias, highlighting persistent fears of a more profound decline. The one-, three- and six-month put-call skews are currently returning positive values, indicating that puts (bearish bets) are fetching higher prices (demand) than calls.

However, if Bitcoin’s price history is of any indication of the future movements, it would seem that six figures by the end the the year would not be an anomaly.

Source: Bitcoin Options Traders Betting on $200K by End of 2021 – Fintechs.fi

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×