In the Bitcoin options market, investors prefer call options at the $300,000 level as the second most popular choice among contracts expiring in June 2025, highlighting the scale of speculative interest in the cryptocurrency market.
Bold predictions in the cryptocurrency market are not just limited to talk; they are backed by real money. These supports often take the form of option plays, which offer significant profit potential at relatively small costs, likened to piano tickets. Currently, the most notable option is the Bitcoin call option at the $300,000 level listed on Deribit, which will expire on June 26. Theoretically, this option is a bet that BTC's spot price will triple by the end of the first half of the year, surpassing $300,000.
Hope of winning the lottery
At the time of writing, there were over 5,000 contracts active in the $300,000 level option expiring in June, representing an open position of $484 million. This is the second most popular option bet within the significant June expiry and only falls behind the call option at the $110,000 level.
Spencer Hallarn, the derivatives trader from cryptocurrency market maker GSR, stated while revealing the high open position on the out-of-the-money (OTM) option at the $300,000 level, "Perhaps people just love to buy lottery tickets. As proven by the call curve, there are always those who want hyperinflation protection."
Deep out-of-the-money options require a large movement in the price of the underlying asset to become profitable and are therefore significantly cheaper compared to those that are close to or below the asset's current market price. However, if the market rises, the returns can be quite large, which makes them akin to purchasing lottery tickets with low probabilities but high payout potential.
The reasons behind it
Simranjeet Singh, a trader at GSR, expressed while revealing the large open position for the option at the $300,000 level, "I suspect this is primarily because U.S. regulations will be crypto-friendly and that it's a build-up of relatively cheap wings betting on the 'wingman possibility' of the BTC strategic reserve raised at the start of the administration."
On Friday, Senator Cynthia Lummis expressed that she was "particularly pleased" with President Trump's support for the BITCOIN Act. Lummis stated on the X platform, "The BITCOIN Act is the only solution to our nation's $36 trillion debt. I'm grateful to a forward-thinking president who not only recognizes this but takes action."
