Deerbit Launches New $100,000 Bitcoins Options Contract
Crypto derivatives exchange, Derbit has announced that crypto traders who want to be on the price of Bitcoin during this period can do so up to $100,000 in its recently launched options contract. In a statement that was shared by Deerbit, the derivatives exchange noted that the new service that started with call and put options with its strike at $100,000 began on Thursday.
Buttressing the exchanges’ announcement, the chief commercial officer of Deerbit, Luuk Strijers told various news outlets that about 45 trades had taken place from the time of launch up till this moment. As at this moment, the call options of the contracts had been able to garner a total open interest of about 29.4 contracts.
New Bitcoin options contract set to expire in September 2021
While the call options of the $100,000 have seen a little bit of activity, the put option has not registered any activity since the feature launched in the crypto exchange. Options are a feature of the derivatives market which allows traders in the crypto market sell their purchased asset at a predetermined price at an already established day. In simple terms, the call options mean that the investor wants to buy while the put options mean that the investor is interested in selling the assets.
Deerbit, in turn, will allow investors and traders the opportunity to call or put one Bitcoin, which means that they would be able to buy or sell one Bitcoin. If a trader decides to call on Bitcoin reaching $100,000, it means that the readers predict that Bitcoin will reach the price before September 24 next year.
This feature is used by traders who believe in the bullish momentum of Bitcoin and believes that it can sustain the digital asset to go way beyond the purchased amount. Traders have noted that the call option is trading way below the strike line, trading around $1,000. In comparison to the $100,000 call, the $24,000 call is trading at around $6,000.
Bitcoin is now in unchartered territory
Traders always purchase the call options on assets that have shown a bullish stance like Bitcoin has been showing in the past few days. They tend to seize the opportunity to purchase the asset small and watch their investment increase as the asset begins to rise.
This means that they would be able to earn massive amounts of profits from their small investments in certain digital assets. The latest move by the derivatives exchange to launch this $100,000 options market is coming off the back of the recent surge that Bitcoin witnessed.
Notably, Bitcoin is now in the uncharted territory after it moved well above the $20,000 region. The digital asset smashed the previous $19,000 before hitting $20,000. It didn’t stop there as it continued its movement into $21,000, $22,000 before finally resting a little above $23,700.
Presently, Bitcoin is trading at $23,100, but analysts are still confident that it still has enough gas to move farther as the days progress. According to Strijers, their decision to launch the market and the expiry date was something that was chosen by the users on their platform.
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