Someone paid $6,450.00 for a Dec 2018 $25000 Call Option

[adaseb]

Don't know if you guys frequent LedgerX data.
http://data.ledgerx.com/


But looks like somebody paid $6,450 for 10 contracts of the $25000 Call which expires in about a year.

2 Days earlier someone paid $5000 for 20 contracts of the same option.

Meaning Bitcoin needs to hit at least $31,450 a year from now for the trade to break-even.


Crazy bullish

[949miner]

That is crazy, but how does it works? Is it just another future's platform? Or it is just like binary options but for long term?

I have never heard about this site before, but this is crazy.

But looks like somebody paid $6,450 for 10 contracts of the $25000 Call which expires in about a year.
Meaning Bitcoin needs to hit at least $31,450 a year from now for the trade to break-even.

So if bitcoin goes down, or if it is below $31,450 by next year, he would lose all the money that he putted in that contract? Poor of him, he is probably very worried right now.

[adaseb]

That is crazy, but how does it works? Is it just another future's platform? Or it is just like binary options but for long term?

I have never heard about this site before, but this is crazy.

But looks like somebody paid $6,450 for 10 contracts of the $25000 Call which expires in about a year.
Meaning Bitcoin needs to hit at least $31,450 a year from now for the trade to break-even.

So if bitcoin goes down, or if it is below $31,450 by next year, he would lose all the money that he putted in that contract? Poor of him, he is probably very worried right now.

No its basically an OTC Bitcoin Options platform for industrial investors. Its not binary options, they are called Vanilla options.

Yes exactly, but if BTC goes to like $30K in like 6 months that contract might have a higher premium, say $10K instead of $6,450 and he can sell it for the 10K.

[P2Pfinder]

Is crazy to pay so high for  option near to be in the money. Because 25.000 is a plausible target, but is preferred to trade bitcoin on leverage instead of buy option at this price!

Don't know if you guys frequent LedgerX data.
http://data.ledgerx.com/


But looks like somebody paid $6,450 for 10 contracts of the $25000 Call which expires in about a year.

2 Days earlier someone paid $5000 for 20 contracts of the same option.

Meaning Bitcoin needs to hit at least $31,450 a year from now for the trade to break-even.


Crazy bullish

[TorbiK]

Maybe people just take a position in both directions, like a strangle one. Given the high volatility of Bitcoin, they almost do not risk a premium for the option.

[adaseb]

Maybe people just take a position in both directions, like a strangle one. Given the high volatility of Bitcoin, they almost do not risk a premium for the option.

Yes this is a possibility however for a strangle position it would need to be much closer to the spot price. $25000 is way too far away from the spot price. A strangle would be near $15K or so for it to be effective or else the premiums would be way too high.

Also I checked and on both days nobody bought similiar amounts of contracts of calls:puts. Maybe they are waiting for the puts to get cheaper and will be an equal amount in the next few days. We will see.

[arpon11]

Though this may not happen but I think one really need to think along with them as the way this bullish momentum is going bitcoin may go above that contract in a year.  The bullish momentum is strong and the market is just waiting in other to get pump again and we expect this to continue. If you look at the other books on most of the popular exchangers platforms you will understand with me that there are many buyers who are willing to buy bitcoin at any price.