#Deribit Large Options Trades#
Hot Topic Overview
Overview
Recently, there have been massive option trades on the Deribit trading platform. The most notable one was a user selling 137.5 BTC worth of 10.5K USD put options and 11K USD call options expiring at the end of March, earning 2.362 million USD. This user shorted volatility with this strategy, expecting the market to gradually cool down and the price to fluctuate around 10.5K USD. In addition, some users bought 2000 ETH worth of 3300 USD call options expiring at the end of January, going long on ETH, expecting the market to continue to rise. These large option trades reflect different expectations of future price movements and investors' judgment on volatility.
Ace Hot Topic Analysis
Analysis
Recently, a large-scale options trade occurred on the Deribit exchange. One user sold 137.5 BTC worth of both put and call options expiring at the end of March, earning $2.362 million. By adopting this strategy, the user shorted volatility, with a profit range of $88,000 to $134,000, achieving a coin-based return of 17.55% (annualized rate of approximately 97.1%). The user believes that the market will gradually cool down as the positive news related to Trump's inauguration is digested, and the current price will fluctuate around $105,000.Furthermore, other users have executed large-scale options trades on Deribit, such as buying ETH call options or selling BTC and ETH call options. These transactions reflect different market expectations regarding future price movements, and users' judgment on volatility.It is important to note that options trading involves risk. Users are advised to proceed with caution and acquire sufficient knowledge about the subject.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Large option trades on Deribit indicate a divergence of views among market participants on the future price trajectory, with some traders anticipating a decline in market volatility while others expect the market to continue its upward trend.
Traders who sell call options seek to profit by collecting the premium and making a profit if the price falls below the strike price at expiration.
Traders who sell put options seek to profit by collecting the premium and making a profit if the price rises above the strike price at expiration.
Market sentiment remains bullish, but some traders are becoming cautious and seeking to lock in profits or mitigate risk by selling options.