How One Bitcoin Options Trader Turned $638K Into $4.4M in 5 Weeks
As bitcoin rallied from $13,400 to over $19,000, a trader who bought the $36,000-strike January expiry call saw a paper profit of more than $4 million.
The BitVol index level puts the cryptocurrency's annualized volatility at 100%.
As long as these options remain open in the market, the next couple of days could be volatile for bitcoin.
“This is a time to make sure that you have some dry powder and are not overextended,” said one trader.
Back in October, one trader made a long-shot bet that bitcoin would hit $36,000 by January. It paid off in a spectacular way.
$14.5 billion in bitcoin options have traded on Deribit in the first two weeks of 2021.