Bitcoin Options Trader Takes $20M Bet to Hedge Against Prices Dropping to $47K

A put option gives the purchaser the right but not the obligation to sell the underlying asset at a predetermined price at a later date. A put buyer is implicitly bearish on the market, while a call buyer is bullish.
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Holy cow! Is that article for real? I feel so much... SMARTER NOW! Thank you very much CoinDesk for that little bit of philosophy.


Looking at the characteristics of the trades, it is likely that traders are holding spot and purchasing hedging positions,” Adam added.
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Another amazing thing I just learned. Though it is also 'likely' I just got more stupid reading that article.
 
The_Krakenite said:
Holy cow! Is that article for real? I feel so much... SMARTER NOW! Thank you very much CoinDesk for that little bit of philosophy.

Another amazing thing I just learned. Though it is also 'likely' I just got more stupid reading that article.
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Dude, what you been drinking lately? Your sarcasm'ometer is going thru the roof. :D
 
SunTrader said:
C'mon man CoinDesk is preaching to the choir of mostly crypto bros who trade on their phone (24% battery level natch) ... that is smarter than they are.
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Maybe they're sending out useless or false news to test the waters. Or, better yet, CoinDesk is really a facade for a hedge fund, who wants to bring Bitcoin down to 47K so they can get in on the action. As crazy as all this may sound, who knows? When it comes to money, strange shit can happen.
 
schizo said:
Maybe they're sending out useless or false news to test the waters. Or, better yet, CoinDesk is really a facade for a hedge fund, who wants to bring Bitcoin down to 47K so they can get in on the action. As crazy as all this may sound, who knows? When it comes to money, strange shit can happen.
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Though I know you're not a EW believer, here's my latest wave count showing 3 potential target zones for a minor wave c of wave 4 of a higher Wave 5 with middle zone of 47350-47500 and likely reaching it in days to a week:-

! Bitcoin Elliott Wave 2 21 24.png



TWT
 
CoinDesk 'Special News Bulletin!'

We have found out that as two days ago, an unknown 'whale' has purchased fire insurance for a mansion they own. The house specified is worth a staggering adjusted cost basis of 10 million.

For those who do not understand how these contracts work, fire-insurance protects the owner of the policy from fire damage to the underlying house specified on the contract. It is believed that this whale may be using this in order to hedge the mansion in case it goes down in a fire in the future.

We want all house traders/flippers to be aware of this important news event as it may be useful to know what those whales see on the horizon.
 
I wonder if it's part of a more complex position, because the wings are tight to act as an hedge and it loses the most in case of a drop.
 
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