A trader paid a premium of over $2 million to buy options and called Ethereum to rise to $3400 by the end of June

BlockBeats News: On June 6th, according to data from cryptocurrency options trading platform Deribit, a trader paid a premium of over $2 million on Thursday to purchase 61000 Ethereum call options with strike prices of $3200 and $3400 that expire at the end of June. In theory, buying a $3200 call option is a bet that the Ethereum price will rise from the current $2460 to over $3200 by the end of the month. Buying a $3400 call option indicates that the expected price will break through that level. In other words, the trader expects Ethereum prices to rise by over 30% within three weeks. Call options give buyers the right (but not the obligation) to purchase the underlying asset at a predetermined price in the future. Call option buyers typically call the market and pay a premium to obtain asymmetric upward returns. In this example, a premium of $2 million is the maximum amount that the buyer may lose if the market does not rise as expected.