put option

Metaplanet rolls over Bitcoin put options to a higher strike price, gaining a premium of 5.9 BTC

ChainCatcher news, according to The Block, Japanese listed company Metaplanet has transferred its Bitcoin put options disclosed on October 3, adjusting the strike price from $62,000 to $66,000, as the company remains optimistic about the outlook for the largest cryptocurrency. A roll of options is a strategy where investors close existing options positions while opening new positions in the same options at a higher strike price. Essentially, this is a way to increase the strike price of options positions.Metaplanet announced on Wednesday that the transaction aims to replace the existing Bitcoin put options with new options at the updated strike price, while maintaining December 27 as the expiration date. Metaplanet CEO Simon Gerovich wrote in an X post: "This increases the nominal yield of our options sales and generates an additional ¥57.9 million in premiums, bringing total premium income to ¥272.5 million, which will be included in this year's revenue." The company noted that the margin collateral remains unchanged at approximately $13.8 million, sourced from the proceeds of its stock options exercise.Specifically, the transaction executed by Metaplanet includes repurchasing 223 Bitcoin put options with a strike price of $62,000 while selling the same number of put options at the higher strike price of $66,000. The company stated: "This adjustment has increased the company's nominal yield by 2.65%, reaching 13.40%," and added that it received a total premium of 5.9 BTC.

Greeks.live: The cryptocurrency options market has a 24-hour trading volume exceeding $1.2 billion, with Bitcoin put options accounting for a quarter of the total trading volume

ChainCatcher news, Greeks.live researcher Adam posted on social media that as the cryptocurrency market continued to rise yesterday, the options market saw a large number of block trades. In the past 24 hours, the total trading volume in the crypto options market exceeded $1.2 billion, with Bitcoin put options having the highest trading volume at $530 million, accounting for a quarter of the total trading volume for the day.The largest single trade had a notional value of $66 million, specifically:Sold 500 Bitcoin put options expiring on March 28, 2025, with a strike price of $40,000, each for 0.0130 BTC, with an implied volatility of 60.50%.Bought 500 Bitcoin put options expiring on December 27, 2024, with a strike price of $40,000, each for 0.0042 BTC, with an implied volatility of 67.85%.This deeply out-of-the-money calendar spread trade shows that the trader collected about $300,000 in premiums, leaning overall bullish, but the specific trading intent is difficult to determine accurately. Greeks.live analysis suggests that the selling power in the options market has been strong recently, especially with put options being priced favorably. Although the cost of buying put options is low, it also indicates that most market participants do not have a positive outlook in that direction.
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