According to a report, there was a surge in the purchase of Bitcoin call options at strike prices above $60,000 with expirations from April to December this year.
“There was massive buying of Bitcoin call options. This week alone, we spent nearly $10 million on premiums for $60,000 and $80,000 strikes expiring April through December,” QCP Capital’s Options Vol-Cast report said Thursday.
This observation is consistent with metrics from cryptocurrency derivatives exchange Deribit. There is a significant concentration of open Bitcoin call options on Deribit with strike prices of $65,000 and above with expirations from April to December. In particular, for Bitcoin call options with a year-end expiration date in December, there is a focused cluster with a strike price of $100,000.
When it comes to Bitcoin call options for December 2024, the focus is clearly on a strike price of $100,000. Image: Deribit.
Of all the upcoming expirations, calls with a strike price of $60,000 and expiration at the end of March represent the largest volume of Bitcoin options. According to Deribit data, there are 1,273 contracts for Bitcoin calls with a strike price of $60,000 expiring on March 29, representing a notional value of over $67 million.
The largest volume of BTC options are calls with a strike price of $60,000 for March expiration. Image: Deribit.
The concentration of Bitcoin calls at a strike price of $60,000 and above suggests that a significant portion of market participants have a particular interest or expectation that the Bitcoin price will rise above this level.
When someone purchases options premium, they pay a fee, called a premium, to purchase an options contract. In financial markets, options are derivative contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price, called the strike price, within a specific time frame. The buyer of the option premium essentially acquires this right.
According to The Block's Price Page, Bitcoin was changing hands for $52,330 at 6:07 a.m. ET.
The GM 30 index, which represents a selection of the top 30 cryptocurrencies, has risen 2.49% in the last 24 hours and is now at 112.63.
Bitcoin price has risen above the $52,000 mark. Image: The Block.
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