Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Bitcoin Forum => Bitcoin News & Updates => Topic started by: Fawpac2 on March 30, 2021, 12:37:30 AM
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The open interest on Bitcoin (BTC) Dec. 31 call options between $100,000 and $300,000 reached an impressive 6,700 contracts, which is currently worth $385 million. These derivatives give the buyer the right to acquire Bitcoin for a fixed price, while the seller is obliged to honor it.
One might think that this is a great way to leverage a long position, but it comes at a cost and is usually quite high. For this right, the buyer pays an upfront fee (premium) to the call option seller. For example, the $100,000 call option is currently trading at 0.164 BTC, equivalent to $9,480. Source (https://cryptonews.net/504263/?utm_source=CryptoNews&utm_medium=app&utm_campaign=shared)