Home Cryptocurrency Return of Animal Spirits? Bitcoin Traders Lock $20M in the $200K Call Option

Return of Animal Spirits? Bitcoin Traders Lock $20M in the $200K Call Option

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Deep OTM calls are cheaper than those at strikes closer to and below the going market rate. Thus, outright purchases of deep OTM calls are often considered analogous to lottery tickets. The loss is limited to the extent of the premium paid to purchase the option, but, in theory, profit can be huge if the market exceeds the strike price before expiry.

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