Specific Trader Makes $887,000 Profit from ETH Options Trade

IconCrypto News Terminal23 Apr, 2024

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Specific Trader Makes $887,000 Profit from ETH Options Trade

A specific trader made a significant profit by selling Ethereum (ETH) put and call options that expire in late May. According to Lin Chen, Asia business development lead at crypto options exchange Deribit, the trader sold options with a strike price of $3,200 and a total notional value of 1,500 ETH, resulting in a profit of approximately $887,000. Chen believes that the trader likely holds a substantial amount of ETH and anticipates that its price will remain stable until the end of May. This strategy involves writing (selling) options and is often employed by traders who believe the underlying asset will not experience significant price fluctuations. Previously on April 22, 2024, Deribit's Lin Chen reported a similar trade where a trader profited by selling ETH options with the same strike price and expiration date.

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