With the U.S. election approaching, an institution is betting $25 million on the Derive Bitcoin options market

2024-10-24 16:13:01

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ChainCatcher news reports that an institution executed a $25 million hedge trade in the on-chain Bitcoin options market on Derive, betting that Bitcoin will continue to rise after the U.S. elections on November 5. This trade involves a bullish options strategy, aiming for Bitcoin to reach $80,000 before November 29, making it the largest on-chain options trade related to the U.S. elections to date.

The institution purchased 100 call options with a strike price of $70,000, while selling 200 call options at $80,000 and 100 put options at $50,000, all set to expire on November 29.

Nick Forster, co-founder of Derive, stated that this trade demonstrates the flexibility and scalability of on-chain options trading. If Bitcoin reaches $80,000 by November 29, this strategy could yield a profit of $1.02 million. Derive currently accounts for 32% of the total volume in decentralized exchange options trading, but the scale of the on-chain options market remains relatively small compared to centralized platforms like Deribit.

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