So, like, some observer was saying that there are always people who want to hedge against hyperinflation, you know? They were talking about how there’s been a solid increase in interest for this $300K call option that expires on June 26. Apparently, it’s all happening in the crypto market where bold predictions aren’t just talk – they’re backed by real dollars. And get this, a lot of these predictions are made through option plays that are kind of like lottery tickets, offering big rewards for a small cost.
The big deal right now is this $300,000 strike bitcoin call option listed on Deribit that expires on June 26. Basically, if you buy this call option, you’re betting that the price of BTC will triple to over $300,000 by the end of June. Crazy, right? At the time of writing, there were over 5,000 contracts active for the June $300K call, with a total open interest of $484 million. That makes it the second most popular option bet for the June expiry, right behind the $110K call.
Deribit is like the top dog when it comes to crypto options exchanges, accounting for more than 75% of the global options action. On Deribit, each options contract represents 1 BTC. These quarterly expiries, like the one coming up on June 26, tend to drive up market activity and volatility. Traders use these deadlines to either hedge their positions, lock in profits, or take a gamble on where prices might go next.
Spencer Hallarn, a derivatives trader at GSR, mentioned that there are always people looking for a hedge against hyperinflation. He was talking about the high open interest in this out-of-the-money $300K call option. These deep out-of-the-money calls, or wings as they’re sometimes called, require a big move in the price of the asset to become profitable. So, they’re a lot cheaper compared to options that are closer to the current market rate. But hey, if the market takes off, the payoff could be huge. It’s kind of like buying a lottery ticket – slim chances, but a big payout if you get lucky.
The $300K call option on Deribit has seen a similar interest during past bull cycles, but it’s rare for these kinds of bets to become so popular. The chart shows that the June 26 expiry is the biggest one for the year, and the $300K call has the second highest open interest for that expiry. Simranjeet Singh, a trader at GSR, thinks that this high open interest in the $300K call is mainly due to traders buying cheap wings as a bet on the broader U.S. regulatory narrative being pro-crypto.
According to Amberdata’s Director of Derivatives, there was some notable selling of the $300K call option in April. This selling was part of a covered call strategy where traders try to make extra money on top of their spot market holdings. Selling these higher strike out-of-the-money call options can bring in some premium while holding a long position in the spot market. It’s a common strategy in both crypto and traditional markets.
So, like, who knows why all this matters, but it seems like there’s a lot of action happening in the world of crypto options. The $300K call option on Deribit is getting a lot of attention, and people are making some big bets on where the price of BTC might go. It’s like a high-stakes game of chance, with the potential for some serious rewards if things go your way. And hey, with all the volatility in the market, who knows what might happen next? Stay tuned for more updates on the wild world of crypto options trading.
