#Deribit Spot Traders Operate Options#
Hot Topic Overview
Overview
Recently, there has been a surge in spot traders operating options on the Deribit platform. One user, for instance, sold 10.5 million USD put options and 11 million USD call options expiring at the end of March, a total of 137.5 BTC, generating a revenue of 2.362 million USD. This operation is considered to be shorting volatility, with a profit range of 88,000 - 134,000 USD, resulting in a 17.55% BTC-based return (annualized at approximately 97.1%). In addition, another user purchased 2,000 ETH call options expiring at the end of January with a strike price of 3,300, paying 310,000 USD, demonstrating a bullish sentiment towards ETH. These actions reflect the diverse market expectations for future price movements and highlight the significant role options trading plays in the market.
Ace Hot Topic Analysis
Analysis
Recently, there have been some large option trades on the Deribit platform. The most notable is a trader selling 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 trader's strategy is to short volatility, believing that the market will cool down as positive news surrounding Trump's presidency is digested, with the current price hovering around $105,000. Furthermore, another trader bought 2,000 ETH worth of call options at $3,300 expiring at the end of January, going long on ETH and believing that the market is still in a FOMO state, with a high volatility index. Both traders' strategies are based on their assessments of the future market trends. They are utilizing option instruments to manage risk and generate profits. It is worth noting that option trading is high risk and requires careful operation.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Spot traders can collect premium by selling options and hedge against volatility risk.
Selling a call option, if the spot price is lower than the strike price at maturity, you can make a profit and get the premium.
Selling a put option, if the spot price is higher than the strike price at maturity, you can make a profit and get the premium.
Spot traders can collect premium by selling options and hedge against volatility risk, and they can use the spot position to lock in profits.