Derive trader builds $68 million bitcoin call position targeting $90,000 after U.S. midterms
A single wallet bought 800 bitcoin $90,000 calls on decentralized options platform Derive, the largest open BTC position on the venue. Market-implied odds of a $100,000 bitcoin by Christmas also rose.
CryptoSource: CoinDesk
Options activity on the decentralized platform Derive is providing some interest in an otherwise quiet crypto market, according to CoinDesk's Daybook newsletter. Bitcoin and other major tokens, including ether, XRP, solana, dogecoin and BNB, showed little movement over the weekend, with bitcoin hovering near the $80,000 area.
Derive told CoinDesk that on Oct. 20 a single wallet bought 800 contracts of $90,000 call options expiring on Nov. 6, shortly after the U.S. midterm elections. Each contract represents one bitcoin, so the position has a face value of roughly $68 million at current prices. The exchange described it as the largest open bitcoin position on the platform.
The position was not purchased outright. The same wallet sold 400 contracts of $100,000 calls expiring in March 2027 and a further 400 contracts of $90,000 calls expiring on Oct. 30. According to Derive, the trader collected about $940,000 net after financing the purchase. A call option gives its holder the right, but not the obligation, to buy the underlying asset at a preset price on or before a given date.
Market-implied odds on Derive also moved higher. The probability of bitcoin exceeding $100,000 by Christmas rose from 9.7% a week earlier to 12%, while the implied chance of it falling below $70,000 by Christmas declined from 15.6% to 11%.
Derive is the largest decentralized exchange by notional volume and open interest, based on DefiLlama data, but it remains much smaller than the centralized options venue Deribit, which records volume and open interest worth several billion dollars daily. On Deribit, 25-delta skews for both bitcoin and ether are negative at the front end, meaning puts are priced above calls, which points to a preference for downside protection.
The newsletter also noted a technical picture for ether, which is close to falling below the Ichimoku cloud and losing support from a bullish trendline that began with late June lows. If both breakdowns were confirmed, the newsletter said, it would signal weak demand and the end of ether's bullish structure.
Based on reporting by CoinDesk.