Bitcoin call-option buys surge at $60,000 and $80,000 strike prices: QCP Capital

Quick Take

Bitcoin call options for all expiries from April through to December show a notable concentration at strike prices above $60,000, according to a QCP Capital report.
The price of bitcoin increased above the $53,000 mark over the past 24 hours, according to The Block’s Price Page.

There has been an increase in bitcoin call option buying at strike prices above $60,000 for expiries from April through to December of this year, according to a report.

"There has been massive bitcoin call option buying. This week alone, we saw close to $10 million spent on premiums for $60,000 and $80,000 strikes expiring from April to December," QCP Capital's Options Vol-cast report said on Thursday.

This observation concurs with metrics from the Deribit cryptocurrency derivatives exchange. There is a significant concentration of open bitcoin call options at strike prices of $65,000 and above for expiries from April through to December on Deribit. Notably, for bitcoin call options for the December end-of-year expiry, there is a focused cluster at a strike price of $100,000.

Bitcoin call options for December 2024 show a significant focus on a strike price of $100,000. Image: Deribit.

Out of all upcoming expiries, the largest volume of bitcoin options are calls at a strike price of $60,000 for the end of March expiry. According to Deribit data, there are 1,273 contracts for bitcoin calls at a strike price of $60,000 for the March 29 expiry, amounting to a notional value of over $67 million.

The largest volume of BTC options are calls at a strike price of $60,000 for March's expiry. Image: Deribit.

The concentration of bitcoin calls at the $60,000 strike price and above suggests that a significant proportion of market participants have a particular interest or expectation that the price of bitcoin will rise above this level.

When someone buys an options premium, they are paying a fee, known as the premium, to acquire an options contract. In financial markets, options are derivative contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price, known as the strike price, within a specified time frame. The buyer of the options premium is essentially purchasing this right.

Bitcoin was changing hands for $52,330 at 6:07 a.m. ET, according to The Block's Price Page.

The GM 30 Index, representing a selection of the top 30 cryptocurrencies, has risen by 2.49% in the past 24 hours, now at 112.63.

The price of bitcoin has increased above the $52,000 mark. Image: The Block.

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