Sunday, June 13, 2021
JAY TALKS CRYPTO
No Result
View All Result
  • Home
  • Bitcoin
    • Bitcoin Live
  • Ethereum
  • Cryptocurrency
    • Cryptocurrency live
  • Altcoins
    • Altcoins Daily
  • Cardano
    • Cardano Price Prediction
  • XLM Live
    • XLM
  • XRP
  • Litecoins
  • Dogecoin
  • More
    • Coingecko
    • Coin Bureau
  • Videos
JAY TALKS CRYPTO
No Result
View All Result
Home Bitcoin

Bitcoin at $200K by Year’s End? Some Crypto Options Traders Make That Bet

admin by admin
June 11, 2021
in Bitcoin
0
Bitcoin at $200K by Year’s End? Some Crypto Options Traders Make That Bet
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter


Some bitcoin options traders are making outlandish wagers, betting on a rally to a six-figure price by year end even as the 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 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.

Related: Making Bitcoin Legal Tender in El Salvador an ‘Interesting Experiment,’ Central Banking Official Says

While the trade size is relatively small compared with similar gambles that CoinDesk has covered in the past, 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.

Related: Bitcoin Holds Short-Term Support, Faces Resistance at $40K

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.

The chart also shows a small build-up of open interest in the $300,000 and $400,000 calls.

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.

Also read: Looming ‘Death Cross’ Could Signal Bitcoin Bear Market

Related Stories



Source link

Related articles

$288K BTC price ‘still in play’ says PlanB as Bloomberg champions Bitcoin halving

$288K BTC price ‘still in play’ says PlanB as Bloomberg champions Bitcoin halving

June 13, 2021
Wannabe Bitcoin ETFs Are Mushrooming and Getting More Creative

Wannabe Bitcoin ETFs Are Mushrooming and Getting More Creative

June 13, 2021
Tags: 200KbetBitcoincryptooptionstradersyears
Share76Tweet47

Related Posts

$288K BTC price ‘still in play’ says PlanB as Bloomberg champions Bitcoin halving

$288K BTC price ‘still in play’ says PlanB as Bloomberg champions Bitcoin halving

by admin
June 13, 2021
0

Bitcoin (BTC) can still hit an average price of $288,000 in the next three years, confident analyst PlanB has...

Wannabe Bitcoin ETFs Are Mushrooming and Getting More Creative

Wannabe Bitcoin ETFs Are Mushrooming and Getting More Creative

by admin
June 13, 2021
0

With at least nine applications for Bitcoins ETFs collecting dust in the Securities and Exchange Commission’s in-box and clients...

GME and AMC stock surge may impact crypto meme coins, BTC not so much?

GME and AMC stock surge may impact crypto meme coins, BTC not so much?

by admin
June 12, 2021
0

This year, stocks like the movie theater chain AMC Entertainment and video game retailer GameStop (GME) have been the...

Adopting the Bitcoin standard? El Salvador writes itself into history books

Adopting the Bitcoin standard? El Salvador writes itself into history books

by admin
June 12, 2021
0

The cryptocurrency space and wider economic community continue to laud a historic move by El Salvador to recognize Bitcoin...

Bitcoin hitting kiosks across North Carolina grocery stores

Bitcoin hitting kiosks across North Carolina grocery stores

by admin
June 12, 2021
0

GREENVILLE, N.C. (WNCT) — Bitcoin is currently the most popular form of cryptocurrency. Now it’s starting to become more...

Load More
  • Trending
  • Comments
  • Latest
2021 Coinbase Debit Card Review • Pros, Cons & More • Benzinga

2021 Coinbase Debit Card Review • Pros, Cons & More • Benzinga

April 14, 2021
MASSIVE NEWS Hokkaido inu Exchange news+ More! 1000x gem! If you missed shiba inu dont miss this!

MASSIVE NEWS Hokkaido inu Exchange news+ More! 1000x gem! If you missed shiba inu dont miss this!

May 12, 2021
Kishu Inu Mega pump! We called it first! Kishu inu Pump update+ Discord updates!

Kishu Inu Mega pump! We called it first! Kishu inu Pump update+ Discord updates!

May 15, 2021
Shiba Inu coin 1000x Exchange+massive news+ Shib Price Prediction!

Shiba Inu coin 1000x Exchange+massive news+ Shib Price Prediction!

May 11, 2021
Best Cryptocurrencies Under 1 Cent • Top 5 • Benzinga

Best Cryptocurrencies Under 1 Cent • Top 5 • Benzinga

0
Want to be rich? Bitcoin’s limited supply cap means you only need 0.01 BTC

Want to be rich? Bitcoin’s limited supply cap means you only need 0.01 BTC

0
Risky business

Risky business

0
Cardano Price Analysis: 07 March

Cardano Price Analysis: 07 March

0
Best Cryptocurrencies Under 1 Cent • Top 5 • Benzinga

Best Cryptocurrencies Under 1 Cent • Top 5 • Benzinga

June 13, 2021
Ontario Lottery and Gaming Corporation – EVENING LOTTERY WINNING NUMBERS

Ontario Lottery and Gaming Corporation - EVENING LOTTERY WINNING NUMBERS

June 13, 2021
$288K BTC price ‘still in play’ says PlanB as Bloomberg champions Bitcoin halving

$288K BTC price ‘still in play’ says PlanB as Bloomberg champions Bitcoin halving

June 13, 2021
How Bitcoin Has Fueled Ransomware Attacks

How Bitcoin Has Fueled Ransomware Attacks

June 13, 2021

Recent News

Best Cryptocurrencies Under 1 Cent • Top 5 • Benzinga

Best Cryptocurrencies Under 1 Cent • Top 5 • Benzinga

June 13, 2021
Ontario Lottery and Gaming Corporation – EVENING LOTTERY WINNING NUMBERS

Ontario Lottery and Gaming Corporation - EVENING LOTTERY WINNING NUMBERS

June 13, 2021

Categories

  • Altcoins
  • Altcoins Daily
  • Bitcoin
  • Bitcoin Live
  • Cardano
  • Cardano Price Prediction
  • Coin Bureau
  • Coingecko
  • Cryptocurrency
  • Cryptocurrency live
  • Dogecoin
  • Ethereum
  • Litecoins
  • Videos
  • XLM
  • XLM Live
  • XRP

Follow Us

Calculator

 
  • Privacy & Policy
  • About Us
  • Contact Us

© 2021 Jay Talks Crypto  

No Result
View All Result
  • Home
  • Bitcoin
    • Bitcoin Live
  • Ethereum
  • Cryptocurrency
    • Cryptocurrency live
  • Altcoins
    • Altcoins Daily
  • Cardano
    • Cardano Price Prediction
  • XLM Live
    • XLM
  • XRP
  • Litecoins
  • Dogecoin
  • More
    • Coingecko
    • Coin Bureau
  • Videos

© 2021 Jay Talks Crypto