Bitcoin

Higher

BlackRock

You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/blackrocks-ibit-etf-sees-increased-activity-in-options-trading/" data-wpel-link="internal">BlackRock’s IBIT ETF Sees Increased Activity in Options Trading</a> 
BlackRock, the world’s largest asset management firm, has attracted attention with significant trading volume in put options for its Nasdaq-listed spot Bitcoin ETF, IBIT, particularly at the $30 and $35 strike prices. Over 13,000 contracts for the $30 options changed hands, as the ETF’s value rose by 1.7% to reach $57.91. Meanwhile, more than 10,000 contracts were traded for the $35 put options. 
<h2 style="text-align: justify" id="strong-what-is-cash-secured-put-selling-strong">What is Cash-Secured Put Selling?</h2> 
An investor engaging in cash-secured put selling receives a premium by providing “insurance” against price declines. In return, they incur an obligation to purchase the underlying asset at a predetermined price if the option is exercised. 
<figure id="attachment_414973" aria-describedby="caption-attachment-414973" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" loading="lazy" decoding="async" class="size-full wp-image-414973" src="https://coin-turk.com/wp-content/uploads/2024/12/BlackRock-IBIT-Opsiyon.png" alt="" width="2530" height="1050">
 <figcaption id="caption-attachment-414973" class="wp-caption-text">
 BlackRock IBIT Options
 </figcaption>
</figure> 
According to Greg Magadini, this strategy allows investors to earn premiums while providing the opportunity to acquire the asset at a lower price. Sellers of the $35 put options expiring in January 2026 will retain the premium as long as the ETF stays above that level. However, if the price drops below $35, the option holders can sell the ETF at that price, obligating the sellers to buy it. 
Similarly, those who purchased the $30 put options will face buying obligations if the price falls below that level by the end of May 2025. Magadini noted that these trades often occur due to traders who missed the rally opting for this method. 
<h2 style="text-align: justify" id="strong-call-options-trade-at-higher-prices-strong">Call Options Trade at Higher Prices</h2> 
Overall, IBIT call options are still trading at higher prices than put options. There is a positive call-put skew across expiration dates ranging from five to 126 days. This indicates investors’ positive expectations regarding potential price increases for both IBIT and Bitcoin. 
Farside Investors’ data reveals that IBIT recorded a total net inflow of $393 million on Friday, representing a significant portion of the total $428.9 million inflow for the 11 spot Bitcoin ETFs listed in the U.S. 
The post <a href="https://en.coin-turk.com/blackrocks-ibit-etf-sees-increased-activity-in-options-trading/" data-wpel-link="internal">BlackRock’s IBIT ETF Sees Increased Activity in Options Trading</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.

BlackRock’s IBIT ETF Sees Increased Activity in Options Trading

Table of Contents

COINTURK NEWS

Other articles published on Dec 16, 2024

MicroStrategy to join Nasdaq 100, QQQ ETF following 500% rally this year

900% ROI Potential: Will Qubetics Dominate December, or Will Aave or SUI Steal the Show as Top Cr...

Global Push for Bitcoin: New Roles in the US, Japan, and Thailand

Ripple’s Stablecoin RLUSD Sparks Debate Amid Market Volatility

Bitcoin at $106K All-Time High: $120M Liquidations Signal Momentum Toward $110K

Peanut the Squirrel's Owner Files Lawsuit Against Binance Over $PNUT Token Listing

Join our free newsletter for daily crypto updates!