key takeaways:
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The diagonal and butterfly spreads $ 160,000.
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The call option at the end of $ 200,000 years is likely to profit less than 3%.
Bitcoin (BTC) traders are ready for termination of $ 8.8 billion options at the end of the year, on December 26 at 8:00 am on the UTC. The price of more than $ 1 billion will be activated in bitcoin options if the price exceeds $ 200,000. But is it an indication that traders are experiencing 72% Rali?
Call dominates, but bitcoin blow is comfortable with $ 120K
Currently, the total open interest for calls (buy) options is $ 6.45 billion, which inserts $ 2.36 billion (selling) option trail. This indicates a clear advantage for data call options, when the recession traders appear to be some comfortable with the remaining bill $ 120,000.
In some call options, the strike price is set to $ 170,000 or high level and will end until the bitcoin receives 46% from its current level. In fact, if BTC trades near $ 116,500 on 26 December, a call open interest of only $ 878 million will be finished.
Professional traders often use extremely rapid call options as part of strategies that do not give December on December 70% of December.
Such a strategy, buying $ 200,000 December call in call diagonal proliferation and selling $ 200,000 calls with the end of the first, usually in October.
If the BTC increases $ 146,000 by 31 October, this setup is the highest, causing a long-deta call to the epolec, which makes the short-term call useless.
However, BTC prices above $ 200,000 can actually hurt this strategy. The maximum potential loss is BTC 0.005 (approximately $ 585 at current prices), which is the maximum profit BTC 0.0665 (about $ 7,750).
Another example is the “inverted call butterfly”, including buying a $ 140,000 call, selling two $ 160,000 calls and buying a $ 200,000 call with readers.
This situation is the highest if BTC nets land near $ 160,000 on December 26, BTC 0.112 (around $ 13,050). However, there was a loss when BTC overtook $ 178,500. Nevertheless, a call cap of $ 200,000 helps in potential losses. In this case, the maximum loss is 0.109 BTC, or approximately $ 12,700.
$ 900m put option target $ 50 – $ 80k in bitcoin
A large -scale open interest dos in $ 200,000 call options does not mean that traders hope that bitcoin expects to reach that level. In fact, in put options, around $ 900 million is occupied between $ 50,000 and $ 80,000 for the end of December, showing that the recession bets are also playing, even if they take low ODS.
To clarify the market spirit, the price of $ 140,000 calls is currently around BTC 0.051 (approximately $ 5,940), which is 21% probability based on the black-tied model. Meanwhile, $ 200,000 call trade at BTC 0.007 (approximately $ 814) shows a vested possibility below 3%.
These aggressive attacks may be in the headlines, but the data tells a different story. Traders are not betting the field on 72% Rali. Instead, they are using far-off calls as equipment with strategies that offer limited risk and take advantage of the reverse.
Unlike bitcoin options, how, BTC Prime, which receives $ 200,000 this year, is more than 13%, according to polymerkets.
This article is for genealogy information purposes and is not intention and should not be taken as legal or investment advice. The ideas here, however, express their opinions, are the author’s alone and not necessarily reflecting or representing the ideas and ideas of the coinletgraph.
