BlockBeats News, June 6th, according to data from the cryptocurrency options trading platform Deribit, a trader paid a premium of over $2 million on Thursday of this week to purchase 61,000 Ethereum call options expiring at the end of June with strike prices of $3200 and $3400.
In theory, buying the $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 the $3400 call option indicates an expectation that the price will surpass that level. In other words, the trader anticipates a price increase of over 30% in Ethereum within three weeks.
Call options give the buyer the right (not obligation) to buy the underlying asset in the future at a predetermined price. Call option buyers usually have a bullish outlook on the market and pay a premium to gain asymmetrical upside benefits. In this case, the $2 million premium represents the maximum amount the buyer could lose if the market does not rise as anticipated.
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