In the crypto market, bold predictions not only speak -they are backed by real dollars, often through option games similar to Lottery tickets that offer a large upside for relatively small costs.
That stand-out from writing is the derived-listed $ 300,000 strike Bitcoin Call Option that expires on June 26. Theoretically, this call is an effort for BTC’s spot price to triple to over $ 300,000 at the end of the first half of the year.
Over 5,000 contracts were active in June $ 300,000 call at the press point with a nominal open interest rate of $ 484 million. It makes it the second most popular setting bet in the crucial outlet of June, which will only draw the $ 110,000 call.
Deribit is the world’s leading crypto option exchange that accounts for over 75% of global option activity. On dismissal represents an option contract 1 BTC. Quarterly expiry, such as the one who is due on June 26, drives increased market activity and volatility, with dealers using these deadlines to uncover positions, lock gains or speculate on the next price movements.
“Maybe people are like buying lottery.
Deep OTM calls, also called wings, requires a big step in the underlying asset price to become profitable and are therefore significantly cheaper compared to those closer to or below the asset’s ongoing market interest rate. However, the payment is huge if the market’s events, making them buy lottery tickets with slim odds, but the potential for a large payment.
Deribit’s market for BTC options has experienced similar streams under previous bull cycles, but these efforts rarely got enough popularity to rank as the second most preferred game in quarterly expiry.
The chart shows that the expiry of June 26 is the largest among all settlements due to this year, and the $ 300,000 call has the second highest build of open interest in the June options.
GSR’s Trader Simranjeet Singh explained the chunky nominal open interest in the $ 300,000 call, said GSR’s trader Simranjeet Singh: “I suppose this is mostly an accumulation of relatively cheap wings that weigh over a wider American regulatory BTC strategic reserve that was punted around at the start of the administration. ” “
On Friday, Senator Cynthia Lummis said in a speech that she is “especially happy with President Trump’s support for her Bitcoin Act.
“The Bitcoin Act is the only solution to our country’s debt of $ 36t. I am grateful for a forward-thinking president who not only recognizes this but is acting on it,” said Lummis on X.
Who sold $ 300,000 calls?
According to Amberdata’s Director of Derivatives, it found remarkable sales in the $ 300,000 call, which expired on June 26, in April as part of the covered call strategy used by dealers to generate additional dividends on top of their spot market.
“My idea is that the sales volume on April 23 came from dealers who generated income towards a long position,” Magadini told Coindesk. “Each option sold for about $ 60 to 100% implicit volatility.”
It is a popular dividend-generating strategy in both crypto and traditional markets to sell higher strike-OTM call options and collect prize while having a long position in the spot market.
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