Bitcoin Traders Can Now Bet on $40K Price With New Deribit Options
Options at a $40,000 strike price expiring in March 2021 and June 2021 went live on Deribit early on Friday
Crypto derivatives exchange Deribit has listed bitcoin options contracts that allow traders to bet on a potential price rally to $40,000 next year.
- Options at a $40,000 strike price expiring in March 2021 and June 2021 went live on Deribit early on Friday, as noted by research firm Skew.
- In effect, the new contracts will allow market participants to express a long-term bullish view on bitcoin.
- They will appeal to traders expecting a price rally to above $40,000 on or before the above expiries.
- Options are derivative contracts that give the buyer the right, but not the obligation, to buy (call) or sell (put) an underlying asset at a predetermined price on or before a specific date.
- The new contracts come at a time when bullish expectations are high due to rising institutional participation and mainstream adoption.
- So far today, Deribit, the world's largest crypto options exchange by trading volume, hasn't registered any activity for the $40,000 options.
- Bitcoin is currently trading at $13,290, representing an 85% gain on a year-to-date basis.
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