Bitcoin options on Futures contracts on the CME start
Crypto-traders now have a new way to invest in Bitcoin. The CME Group, owner and operator of the leading derivatives, Options and Futures exchanges, has launched today, Monday options on your Bitcoin Futures contracts.
In the announcement of the options on your Bitcoin Futures contracts of the Chicago Mercantile Exchange (CME) wrote:
Options on Bitcoin Futures offer greater capital efficiency and a new way to manage the Bitcoin Exposure.
The release of the Bitcoin options of the CME is the next stage of the Hedging business, which began in December 2017 with the introduction of Bitcoin Futures. Prior to today’s introduction of CME’s Bitcoin Futures Open Interest (OI) launched the first four trading days, with 5,400 contracts at the 7. In January, 69% more than at the end of the year, which boosts optimism for BTC options.
Bitcoin futures open interest (OI) started the first four trading days with 5.4 K contracts on January 7, up 69% from year-end, OI. https://t.co/rkPfdlSyeB pic.twitter.com/Dnm1h4Jrcu
— CMEGroup (@CMEGroup) On January 9, 2020
Options and Futures are both financial products, the earning of investors to the money or in order to hedge current investments be used, but they are not the same. The CME options on Bitcoin Futures give the buyer of a Call or Put is the right to buy a Bitcoin Futures contract at a certain strike price at a later date or to sell. In other words, an Option gives the investor the right but not the obligation, to purchase an asset at a specified price or to sell, as long as the contract is in force. A futures contract obliges a buyer to buy the asset (e.g., Bitcoin), and a seller to sell you on a specific future date, unless the Position of the holder is closed before the expiration date.
According to the crypto-derivatives data-Tracker Skew the global trade volume of BTC Futures at 8. January, the 20-billion-Dollar-brand been exceeded, because the Bitcoin derivatives market continues to expand, and traditional and institutional investors attracts. So far, the interest in other Options products, however, was rather low, as JPMorgan Chase-Analyst Nikolaos Panigirtzoglou believes that options for a great Player such as CME could trigger more enthusiasm.
In a recent note Panigirtzoglou highlights the steep increase in the activity of the underlying CME Futures contract, as reported by Bloomberg. Panigirtzoglou says:
This unusually strong activity of the last few days, the high expectations of the market participants in the option contract reflects likely.
CME joins other exchanges that offer a BTC-option product. The Bitcoin derivatives exchange FTX began on the Saturday of your BTC options and announced that the volume has quickly reached 1 Million dollars. In December Bakkt announced two new products: Bitcoin options and cash settled Futures.
The Bullrun is coming?
In the last seven days, the price of Bitcoin from about 7,500 USD has risen to more than 8,100 USD at the time of preparation of this report, with BTC at times, up to 8,400 has been reached. Currently Bitcoin is in a sideways at its current price of $8.150 and is struggling to gain any momentum in one direction or the other.
It seems that the level of 8,000 USD, the brand has become a strong support, as the short Dive was made into the lows of $7.950, buyers are quickly reversed, the were able to press back on your current price level. In the short term, UB believes – a popular Cryptocurrency Analyst on Twitter – that Bitcoin will soon receive a massive Momentum, which allows him to overcome all important resistance values, which could lead BTC up to 9,500 USD.
$BTC – I believe it’s more than likely we see continuation to the upside over the next few weeks with a target of ~$9.5 k.
*A Weekly Close below $7,460 would completely invalidate this argument*
Dips are for buying.#Bitcoin pic.twitter.com/OdSIKcxQFg
— UB (@CryptoUB) January 12, 2020
FlibFlib, another prominent crypto-Analyst, discussed the current price movements of Bitcoin in a Tweet and told his followers that he was bullish feel in the near to medium term.
In my humble opinion, Bitcoin has already broken out on the CME and on the Spot exchanges with confirmation on the OBV & now just waiting on a higher high on Macro TFs.
Maybe some chop sideways and a bit of a backtest but everything is there to make me overall bullish. $btc pic.twitter.com/6H60LHqbsx
— fil₿fil₿ (@filbfilb) January 12, 2020
Featured Image: Wright Studio | Shutterstock
