Bitcoin Traders’ Favorite Lottery Ticket for the First Half of the Year — The $300K BTC Call
Bitcoin Traders’ Favorite Lottery Ticket for the First Half of the Year — The $300K BTC Call
"There are always folks that want the hyperinflation hedge," one observer said, explaining the solid open interest build up in the $300K call option expiring on June 26.
- The $300K call option is the second-most popular bet in the June expiry options, reflecting speculative interest in bitcoin's potential price surge.
- The June expiry is the biggest among all impending settlements this year.
- One observer compared the bet to buying lottery tickets.
Bitcoin enthusiasts have been keeping a close eye on the $300,000 call option set to expire on June 26, which has garnered significant interest as a potential hedge against hyperinflation. This particular option stands out as the second most favored bet among the June expiry options, reflecting the market's speculative outlook on Bitcoin's price potential.
The upcoming June expiry is anticipated to be one of the most significant settlements in the crypto market this year. With over 5,000 active contracts and an open interest totaling $484 million in the $300K call option, it holds a strong position as a popular choice for traders seeking substantial gains with relatively low costs.
Comparing this trading strategy to buying lottery tickets, Spencer Hallarn from GSR notes that despite being deep out-of-the-money calls offering slim odds of profitability, they present an attractive opportunity for a considerable payoff if Bitcoin's value surges significantly.
Senator Cynthia Lummis recently expressed satisfaction with President Trump's endorsement of her BITCOIN Act during a speech. Additionally, notable activity involving selling $300K calls was observed in April by Amberdata's Director of Derivatives. This selling was part of a covered call strategy aimed at generating additional returns alongside spot market holdings, a tactic commonly employed across both traditional and cryptocurrency markets.
The chart shows that the June 26 expiry is the largest among all settlements due this year, and the $300K call has the second-highest open interest buildup in the June expiry options.
On Friday, Senator Cynthia Lummis said in a speech that she's "particularly pleased with President Trump's support of her BITCOIN Act.
Who sold $300K calls?
According to Amberdata's Director of Derivatives, notable selling in the $300K call expiring on June 26 occurred in April as part of the covered call strategy, which traders use to generate additional yield on top of their spot market holdings.
Selling higher strike OTM call options and collecting premium while holding a long position in the spot market is a popular yield-generating strategy in both crypto and traditional markets.
