Key Highlights:
- The $300K Bitcoin call option has soared in popularity for the June 27 expiration, registering over $600 million in open interest.
- Traders anticipate a notable price surge in Bitcoin, currently valued at approximately $110K.
- The appetite for short-term options signifies a strong interest in quick bullish trades, which could indicate a potential market peak.
Earlier this month, CoinDesk pointed out the rising popularity of the $300,000 Bitcoin call option on Deribit, branding it as one of the most sought-after bullish strategies for the upcoming quarterly expiration in June.
This option is now the top choice among traders banking on Bitcoin eclipsing $300,000 by the end of next month.
At the time of reporting, the $300,000 call option was leading the June 27 expiry discussions, boasting an open interest surge from $484 million reported three weeks prior, as per Deribit data. Open interest reflects the financial value of active contracts at a singular moment. On Deribit, one option contract corresponds to one BTC.
“The June $300K BTC call options have emerged as the most significant strike with the highest open interest, demonstrating aggressive speculative behavior as traders expect the upward trend to continue,” Lin Chen from Deribit explained to CoinDesk.
Moreover, the combined peak trading volumes and concentrated bets indicate an increased market confidence and the likelihood of upcoming volatility.
Significant Development: The notional options open interest on Deribit reached an unprecedented peak of $42.5 billion recently, a trend reinforced by a record high of virtually $1 billion in daily trading volumes occurring on their new block RFQ (Request for Quote) system.
A call option allows buyers the right, without obligation, to purchase the underlying asset at a predetermined price before a specified date, signifying optimism in this financial space.
The $300,000 call being prepared for June 27 signifies a bet that Bitcoin’s price will triple within a month. Despite seeming overly ambitious as the deadline nears, traders are clearly drawn to short-term upside potentials.
The growing interest in short-dated calls might serve as a reversal signal, indicating speculative excess typically observed at market peaks, according to Markus Thielen, founder of 10x Research.
Thielen highlighted caution as the options market signals increased optimism, pointing out that the seven-day calls are trading at a 10% premium over puts, which may suggest traders are more focused on pursuing upward movements rather than hedging against downturns.
In his communication, he remarked that the options market reflects peak bullish sentiment, often regarded as a classic contrarian signal.
