Bitcoin Call Options Show Increased Interest in Higher Prices
According to a report, there has been a surge in bitcoin call option buying at strike prices above $60,000 for expiries from April through to December. This week alone, close to $10 million was spent on premiums for $60,000 and $80,000 strikes. The Deribit cryptocurrency derivatives exchange also confirms this trend, with a significant concentration of open bitcoin call options at strike prices of $65,000 and above for expiries from April through to December. Notably, there is a focused cluster of call options at a strike price of $100,000 for the December end-of-year expiry.
Largest Volume of Bitcoin Options are Calls at $60,000 Strike Price
The largest volume of upcoming bitcoin options expiries is concentrated in calls at a strike price of $60,000 for the end of March expiry. There are 1,273 contracts for bitcoin calls at this strike price, amounting to over $67 million. This suggests that many market participants anticipate the price of bitcoin rising above $60,000.
Understanding Bitcoin Call Options
When you buy an options premium, you are paying a fee to acquire an options contract. Options give you the right (but not the obligation) to buy or sell an underlying asset at a predetermined price within a specified time frame. By purchasing the options premium, you gain this right.
Bitcoin Price and Market Index
As of now, bitcoin is trading at $52,330 according to The Block’s Price Page. The GM 30 Index, representing the top 30 cryptocurrencies, has risen by 2.49% in the past 24 hours and currently stands at 112.63.
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