After the parliament of El Salvador supported the presidential bill to legalize bitcoin, the cryptocurrency was able to strengthen slightly.
On some trading floors, in the middle of the week, the BTC rate exceeded $ 38,000. However, a correction returned to the market over the weekend, as a result of which bitcoin rolled back to $ 35,500 on Saturday.
However, the mood among some players in the options market remains optimistic. Such traders are betting on the cryptocurrency spurt to $ 200,000 by the end of 2021. This is the execution price specified in contracts expiring on December 31st.
There are a total of 425 Call Options listed on Deribit with a strike price of $ 200,000 per bitcoin by December 31st.
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Recall that Call options are contracts that allow a trader to buy an underlying asset at a predetermined value at a specific point in time. In theory, the purchase of such a Call contract with a strike price of $ 200,000 on December 31 is a bet that the cryptocurrency will be at higher values in the spot market at the end of this year.
Given that strike prices are drastically different from the current value of bitcoin, such contracts are currently very cheap.
They are traded on the Deribit platform for just 0.018 BTC ($ 698). It looks like a lottery, the loss of the buyer of such an option will be only $ 698. However, if bullish sentiment dominates the market in the second half of 2021, then contract holders will benefit greatly.