#Deribit Institutional Options Trading#
Hot Topic Overview
Overview
There has been a recent surge in large-scale options trading on the Deribit platform, with traders utilizing options strategies for risk management and profit generation. For example, one user sold 137.5 BTC worth of put options at $105,000 and call options at $110,000 expiring at the end of March, generating $2.362 million in revenue. This strategy aims to short volatility, expecting the market to gradually cool down. Additionally, another user purchased 2,000 ETH worth of call options expiring at the end of January with a strike price of $3,300, going long on ETH and expecting the market to continue rising. These trading activities reflect different market expectations for future price movements and showcase the flexibility and diversity of options trading in risk management and profit generation.
Ace Hot Topic Analysis
Analysis
Deribit recently saw large option trades, most notably a user selling 137.5 BTC worth of put options expiring at the end of March at $105,000 and call options expiring at the same time at $110,000, earning $2.362 million. This user shorted volatility with this strategy, expecting the market to calm down gradually and the price to fluctuate around $105,000. Meanwhile, another user made a large option trade in the ETH market, paying $310,000 for 2,000 ETH worth of call options expiring at the end of January at 3,300, going long on ETH. Currently, market sentiment is still in FOMO, with a high DVOL volatility index and extreme greed on the greed index. Additionally, the article explains the basics of options trading, including the profit conditions and profit calculation methods for selling call options. Overall, the large option trades on Deribit reflect different expectations for future price movements, providing investors with new trading strategy options.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Large-scale options trading can be used to short volatility, such as selling put options and call options to collect premiums and bet on declining market volatility.
Large-scale options trading can be used to go long, such as buying call options to bet on price increases.
Large-scale options trading can be used to lock in prices, such as selling call options to collect premiums and lock in an upper price limit.
Large-scale options trading can have high returns, but the risk is also higher, so it is necessary to operate cautiously.