Bullish $10K Ethereum call options excite traders but there’s a catch
Cointelegraph
Published Feb 06, 2021 04:00PM ET
Updated Feb 06, 2021 05:40PM ET
Ether’s (ETH) $10,000 Dec. 31 call options recently came under the spotlight after surpassing $15.2 million in open interest (8,400 contracts). These instruments give the buyer the right to acquire Ether at a future date for a fixed price and the seller is obliged to honor it.
For this right, the buyer pays an upfront fee (premium) to the call option seller. For this reason, call options are deemed neutral-to-bullish as they give its buyer the possibility of high leverage with a little upfront investment. This ‘right’ is currently being traded for $263, equivalent to 14% of the underlying Dec. 31 ETH futures price.
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Written By: Cointelegraph
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