Despite bitcoin’s 20% crash on Monday, some options traders are betting on a continued price rally in coming weeks.
At the press time price of $35,580, bitcoin is up nearly 16% from the low of $30,305 observed on Monday. Even so, the number one cryptocurrency by market value is still well short of the weekend highs above $40,000.
Some traders, though, have been buying Jan. 29 expiry call options at the $52,000, $64,000, and $72,000 strike prices on the Deribit exchange.
A call option gives the buyer the right but not the obligation to buy the underlying asset at a predetermined price on or before a specific date. A call option is a bullish bet, while a put option is a bearish bet. One options contract represents the right to buy or sell one bitcoin on Deribit.
Bitcoin options trades on Deribit