Bitcoin $117,985.64Although the price rally has recently paused, the expectations of the rise of large investors continue. Finally, it was observed that a major investor made a remarkable option process targeting $ 200,000 in the price of Bitcoin until the end of the year. This shows that diversity increases in investment strategies, while pointing to the high expectations in the market.
Details of option strategies
The investor received 3,500 contracts from the 140,000 dollar purchase option to be filled in December in the Deribit Stock Exchange, while sold 3,500 contracts from a purchase option of 200,000 dollars for the same maturity. This strategy is known as ‘Bull Call Spread’ and enables the investor to evaluate the expectation of rise with limited risk. The total net amount paid for the transaction was reported as 23.7 million dollars.
This method provides maximum earnings if the price rises to $ 200,000 at the end of the year. However, at the same time, it carries a limited risk with the first deposited amount. The difference is based on the combination of the high -priced option premium sold with the purchased low -priced option premium. Therefore, both profit and loss can be determined clearly from the beginning. Crypto investors’ application – the reason will surprise you!
Deribit Insights: “December 140-200K Call SPREAD stands out; 140K purchases from low volatility finance 200K purchases from high volatility.”
Corporate interest and market mobility
The price of Bitcoin began to move on a narrow band between $ 116,000 and $ 120,000, after the first time on July 14 increased over $ 123,000. In this consolidated process, corporate investors’ interest in structured financial products has increased and this is reflected in the option market.
On the Deribit stock exchange, where more than 80 percent of Bitcoin options in the world have changed hands, open options positions have reached 372,490 BTC levels. This figure is located just below the 377,892 BTC level seen in June and reflects high interest.
Ethereum $3,745.65 Similarly, there is a serious mobility in options. According to Amberdata’s data, open Ether option positions have broken its own record with 2,851.577 ETH. This shows that investors prefer option markets not only in Bitcoin, but also in Ether.
Increased volume in the option market
Options offer investors the opportunity to protect against both speculation and price movements. The purchase option gives the person the right to get existence at a certain price and to date. Investors turn to purchase options when they think that the market will rise. Sale options are often used for protection against the risk of depreciation.
Recently, the increase in interest in such derivative transactions is considered to be compatible with the volatility and expectations in the market. According to experts, in addition to the market -maker role in the rise in the option volume, the need to manage effective positions of corporate investors can be an important factor.
Such large investor positions observed in leading crypto currencies such as Bitcoin and Ether are not enough to make a definite prediction about the general market direction, but offer important signs of corporate interest and market saturation. The use of advanced option strategies of investors makes it easier to take a more flexible position against price fluctuations. When the expectations and volumes in the market are evaluated together, it is thought that option markets will continue to be an important tool.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.