#Deribit OTC Options Trading#
Hot Topic Overview
Overview
Deribit has recently seen a surge in large-scale options trading, including for BTC and ETH. Some users have opted to sell call options to earn premium income, hoping for the price to be below the strike price at expiration to realize a profit. 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. Additionally, there have been users buying call options, such as one who paid $310,000 to purchase 2,000 ETH of call options expiring at the end of January with a strike price of $3,300, hoping for ETH to rise above $3,450 to realize a profit. With current high market volatility and the greed index in extreme greed territory, some users believe the market will cool down gradually, while others believe it will continue to rise.
Ace Hot Topic Analysis
Analysis
There has been a surge in large-scale options trading on the Deribit platform recently. The most noteworthy trade involved a user selling 105,000 USD put options and 110,000 USD call options expiring at the end of March, totaling 137.5 BTC on each side, generating 2.362 million USD in revenue. This user employed a strategy to short volatility, with a profit range of 88,000 - 134,000 USD, achieving a coin-based return of 17.55% (approximately 97.1% annualized). The user believes that the market will gradually cool down as the positive effects of Trump's inauguration are absorbed, and the current price is expected to fluctuate around 105,000 USD. Additionally, another user purchased 2,000 ETH worth of call options expiring at the end of January with a strike price of 3,300 USD, aiming to go long on ETH. If the price exceeds 3,450 USD at the time of settlement, they will realize a profit. The market currently remains in a FOMO state, with the DVOL volatility index still at a high level of 70.85, while the greed index stands at 84 (indicating extreme greed). The ETH/BTC exchange rate has continued to decline to 0.0314. Some users have opted to sell call options, such as selling 150,000 USD call options on BTC expiring at the end of March, with a premium of 1.95% in coin terms (32% annualized). They will profit if the expiry price is less than 152,000 USD. Furthermore, other users are selling 4,800 USD call options on ETH expiring at the end of March, generating a premium of 2.65% in coin terms (43% annualized). They will be profitable if the expiry price falls below 4,888 USD. These large-scale options trades reflect the diverse expectations about future price movements and offer investors novel investment strategies.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bulk option trading can be used to short volatility, which means expecting future market volatility to decline. For example, selling call and put options to collect premiums and hoping that the price at maturity will be near the strike price, thereby generating profits.
Bulk option trading can be used to go long, which means expecting future market prices to rise. For example, buying call options and hoping that the price at maturity will be higher than the strike price, thereby generating profits.
Bulk option trading can be used to hedge risks. For example, investors holding spot positions can sell call options to lock in profits and reduce risks.
The return on bulk option trading depends on factors such as the strike price of the option, the time to maturity, market volatility, etc. Investors need to carefully evaluate the risks and returns.