A call option allows buyers the right to purchase Bitcoin at a set price, in this case, $300,000, before June 27. Currently trading at around $104,183, options buyers are betting on a significant price jump. This has led to comparisons of such trades to lottery tickets, as the potential payoff is high but the odds are low. Recent data shows rising demand for $300,000 call options, with $600 million reported in notional open interest. Some traders remain optimistic due to the low costs and high rewards while recognizing the substantial risks. High demand for call options can signal market overconfidence, raising concerns about a potential market correction. Currently, Bitcoin call options are trading at a premium, indicating potential euphoria in trading sentiment. History shows that extreme bullish sentiment often precedes market pullbacks. Investing in Bitcoin directly or considering less risky call options might be more advisable for those believing in Bitcoin's long-term potential.

Source 🔗