After Taking Profits, the Infamous $36k Bitcoin Options Call Buyers Reposition to Higher Levels

Deribit meanwhile added Bitcoin options contracts with a $400k strike price with Dec. 21 expiry. Amidst this Dan Morehead of Pantera Capital is calling for $115,000 by August 2021.

Bitcoin call options buying and selling is the name of the game, with short-dated calls in high demand. The two particularly active calls have been for Jan. 29 with $32k and $52k strike price.

Easier this week, the $36 call buyers took profits as we saw in the 28% drop in the spot price of Bitcoin. Until this week, gamma on the Jan21 36k calls was “very significant,” but as most of the $36k calls got unwound, they were no longer the largest pin for Jan expiry.

A sharp move has been rather made in options skew as they repositioned to higher levels with another very large Jan21 pin on the $52k strike, $850mln notional, noted data source Skew.

The largest open interest (OI) for Jan. 29 is now switched from $36k to $52k, and switching has been noted to 56k, 64k, and 72k strikes as well.

“Jan15 weekly expiry will bring further swings to the market and gamma effects only to prove meaningful if spot breaks out higher, otherwise impact will diminish heading into month-end,” noted Denis Vinokourov of Bequant.

BTC 1st Mth Options OI

Source: Skew

Amidst this, crypto derivatives platform Deribit today added Bitcoin options contracts with a $400k strike price with Dec. 21 expiry.

Since December, with the wild rally came the options contracts with strike prices going from $100k, $150k, $160k, and recently $300k before the $400k calls and puts options today.

Bitcoin’s run-up from $3,800 in March 2020 to $42,000 last Friday has also brought forth the predictions that call for $115,000 by August 2021, which has been made by Dan Morehead, founder and CEO of crypto investment firm Pantera Capital at a conference call on Jan. 12.

“Is bitcoin overvalued? I would say no. […] Bitcoin has spent three years well below its long-term compound annual growth trend line, it’s still below it, and although Bitcoin has rallied a great deal over the last six months, I think it is fairly valued.”

Dan Morehead Founder & CEO of Pantera Capital

While the crypto market continues to get more bullish with each passing day, some regulators still can't wrap their heads around this innovation.

The latest one being European Central Bank President Christine Lagarde, who called Bitcoin a “highly speculative asset,” which, according to her, is conducting some “funny business.”

While Lagarde said Bitcoin enabling “totally reprehensible money-laundering activity,” the Crypto Twitter pointed to how she herself has been convicted of criminal charges over massive government payout but not only did she avoid jail but even get to keep her job after a guilty verdict.

Interestingly amidst this, the government of Khyber Pakhtunkhwa (KP), one of Pakistan’s four provinces, launched two state-owned Bitcoin mining farms — one of the first instances of a govt. using its own funds to mine BTC.

Much like other counties, while Pakistan's stance on Bitcoin is stuck in bureaucracy, local governments have been making way for cryptos.

As seen in Miami, Mayor Francis Suarez is working on making it “the most crypto competitive city on the planet.” We’ve always been known as a financial hub,” Suarez said.

“The capital is here. The financial banking sophistication is here. We’ve got to integrate the crypto too, and I think that part is lagging a little bit, from New York, but I think we can do that fast.”

Francis Suarez Mayor of Miami, FL

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