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Deribit cryptocurrency derivatives exchange has expanded the list of strike prices in Bitcoin options to $ 100,000. Such a strike is available in a contract with expiration on September 24, 2021.
We’ve introduced the $100K strike for the BTC-24SEP21 expiry. ????#Bitcoin
– weights (@DeribitExchange) December 17, 2020
Adding such a high strike to Deribit explained “Market demand”. Thursday, December 17, Bitcoin rate updated all-time high, rising above $ 23,700 (Bitstamp).
At the moment, users have purchased 52 call contracts and not a single put.
Deribit data points to optimists willing to pay $ 940 (at the time of writing) to more than quadruple bitcoin over the next three quarters. If the price of the first cryptocurrency exceeds the psychological level, these “calls” will come out “in the money”. They are now “deeply out of the money.”
The option buyer gets the right to buy or sell a bitcoin asset (on Deribit, each contract is equivalent to one bitcoin) at the strike price (strike price) on a specific date (expiration date). The seller agrees to buy or sell the asset at the request of the option holder. The latter pays a certain sum of money to the seller at the time of purchase of the contract – the so-called premium.
To understand how options work, our material.
Recall Deribit obliged all users to be verified by the end of the year. The platform took this step following a similar decision by BitMEX, which launched new KYC program in August.
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