Oops!Something went wrong.Please try again later.Omkar GodboleJune 11, 2021, 7:43 AM·2 min readOops!Something went wrong.Please try again later.
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.
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