Ether traders buy $4k worth of calls in anticipation of a record high
-- TON buying activity was seen on $4,000 worth of ether calls expiring in September.
-- Bullish Flow is in line with expectations of increased volatility.
Catching a falling knife is risky, but some Crypto options traders seem to be doing just that, betting on a bullish outcome in a falling market.
According to CoinDesk , Ethereum's own ether token ` ETH`, the second largest Cryptocurrency by market value, fell more than 5% to $3350 in ONE week. The decline followed rumors that ether ETFs could begin trading in the U.S. next month, and is consistent with weakness in market leader Bitcoin and other alternative cryptocurrencies.
Nevertheless, according to Amberdata, some traders are buying a large number of call options on ether expiring in September at the $4,000 strike level on Crypto Deribit.
A call option is a derivative contract that gives the holder the right to buy an underlying asset at a specified price within a predetermined period of time. When traders buy call options, they do so with the expectation that the price of the underlying asset will rise above the strike price, which in this case is $4,000, before the option expires.
"Looking at the block flows this week, we see a TON of buying activity on September $4,000 calls," said Greg Magadini, director of derivatives at Amberdata, adding that this is a sign that traders are betting that "if ETH rises above $4,000," said Greg Magadini, director of derivatives at Amberdata. we're likely to test and break new all-time highs."
Block trades are large orders that are usually privately negotiated between two parties and listed on an exchange. They are usually favored by institutional investors, hedge funds and large market participants.
Ether, BTC in 2015, set a record price of over $4,800 as of November 2021. the likelihood of ETH getting a spot ETF listing in the US
The U.S. Securities and Exchange Commission (SEC) has since paved the way for the approval of a spot ether ETF and dropped its investigation into Ethereum 2.0, removing significant regulatory uncertainty from the market. Bloomberg ETF analyst Eric Balchunas now expects ether ETFs to begin trading in the U.S. on July 2.
Perhaps traders buying $4,000 calls are expecting fireworks once the ETFs go live. The bullish Flow is consistent with expectations of increased volatility in the ether market. However, some observers, including JPMorgan, T believe the enthusiasm.
-- TON buying activity was seen on $4,000 worth of ether calls expiring in September.
-- Bullish Flow is in line with expectations of increased volatility.
Catching a falling knife is risky, but some Crypto options traders seem to be doing just that, betting on a bullish outcome in a falling market.
According to CoinDesk , Ethereum's own ether token ` ETH`, the second largest Cryptocurrency by market value, fell more than 5% to $3350 in ONE week. The decline followed rumors that ether ETFs could begin trading in the U.S. next month, and is consistent with weakness in market leader Bitcoin and other alternative cryptocurrencies.
Nevertheless, according to Amberdata, some traders are buying a large number of call options on ether expiring in September at the $4,000 strike level on Crypto Deribit.
A call option is a derivative contract that gives the holder the right to buy an underlying asset at a specified price within a predetermined period of time. When traders buy call options, they do so with the expectation that the price of the underlying asset will rise above the strike price, which in this case is $4,000, before the option expires.
"Looking at the block flows this week, we see a TON of buying activity on September $4,000 calls," said Greg Magadini, director of derivatives at Amberdata, adding that this is a sign that traders are betting that "if ETH rises above $4,000," said Greg Magadini, director of derivatives at Amberdata. we're likely to test and break new all-time highs."
Block trades are large orders that are usually privately negotiated between two parties and listed on an exchange. They are usually favored by institutional investors, hedge funds and large market participants.
Ether, BTC in 2015, set a record price of over $4,800 as of November 2021. the likelihood of ETH getting a spot ETF listing in the US
The U.S. Securities and Exchange Commission (SEC) has since paved the way for the approval of a spot ether ETF and dropped its investigation into Ethereum 2.0, removing significant regulatory uncertainty from the market. Bloomberg ETF analyst Eric Balchunas now expects ether ETFs to begin trading in the U.S. on July 2.
Perhaps traders buying $4,000 calls are expecting fireworks once the ETFs go live. The bullish Flow is consistent with expectations of increased volatility in the ether market. However, some observers, including JPMorgan, T believe the enthusiasm.