A call gives the holder the right, but not the obligation, to purchase the underlying asset at a predetermined rate on or before a specific date. That’s locking in the right to buy at today’s price in the future. Even if it costs more when the date arrives, you still get to buy it at the agreed price.
The position was not simply bought outright. The wallet sold 400 contracts of $100,000 calls expiring in March 2027 and another 400 contracts of $90,000 calls expiring Oct. 30, collecting about $940,000 net after financing the purchase.
The second key development is the odds shifting higher. Derive’s market-implied probability of bitcoin exceeding $100,000 by Christmas rose from 9.7% a week ago to 12%. At the same time, the implied chance of bitcoin falling below $70,000 by Christmas dropped from 15.6% to 11%.
Derive is the world’s largest DEX by notional volume and open interest, according to data source DefiLlama.
Still, it is much smaller than centralized giant Deribit, which has been in business for a decade and registers volume and open interest worth several billions of dollars every day. Over there, 25-delta skews for both bitcoin and ether are negative at the front end. In other words, puts are pricier than calls, indicating a bias for downside protection. Stay alert!
