Renowned cryptocurrency derivatives exchange, Deribit, has now listed bitcoin options contracts that permit traders to back a possible price rally to $40k by next year.
Options at a $40k strike price expiring later in March 2021 and June 2021 went live on Deribit earlier today on Friday, as revealed by research firm Skew.
Moreover, the new contracts will permit market participants to precise a long-term bullish view on Bitcoin [BTC, +2.29%].
They will appeal to traders expecting a price rally to over $40k on or prior to the above expiries. Options are derivative contracts that give the users the right, but not the requirement, to buy for [call] or sell [put] an underlying asset at a predetermined price on or prior to a selected date.
The new contracts come at a time when bullish expectations are high due to the rising institutional participation as well as mainstream adoption.
As of the reporting time, Deribit, the global leading cryptocurrency options exchange by trading volume, hasn’t registered any activity for the $40k options.
At the reporting time, Bitcoin [BTC] is presently trading at $13,290 USD, representing an 85% gain on a year-to-date basis.