Latest news with #Magadini
Yahoo
21-05-2025
- Business
- Yahoo
Ether Is Set to Explode as Traders Pump Millions Into $6K ETH Bets
Crypto traders are betting big on ether ETH in the wake of the recent rally. Last week, block traders, typically institutions and large players, executed bull call spreads on ether, purchasing the $3,500 call options while simultaneously shorting an equal number of calls at the $6,000 strike, both set to expire on Dec. 26. Traders executed the strategy via over-the-counter platform Paradigm, which was later listed on crypto exchange Deribit. Traders executed 30,000 contracts of the $3,500/$6,000 call spreads across 10 separate trades, spending just over $7 million in initial debt/cost. The strategy will yield the highest profit if ether rises to or beyond $6,000 by Dec. 26. On Paradigm and Deribit, one options contract represents one ETH. Therefore, the large volume of the $3,500/$6,000 call spreads indicates a strong expectation of a bullish move to $6,000 by the end of the year. As of writing, ether changed hands at $2,510, according to CoinDesk data. Note that if ETH stays below $3,600, the strategy will expire worth less, limiting the loss to the initial cost of $7 million. Another downside of this strategy is that traders stand to lose out on potential upside above $6,000 due to the short position at that strike level. Ether's price has risen over 80% to $2,500 since early April, when the broader market panic saw ETH hit a low of around $1,390 on several exchanges. Magadini said there is no reason to call tops in ETH right now. "I continue to like these upside trades, especially for the beat-up Ethereum, as risk assets continue to rally. There's a good argument for ETH "catching-up" as spot ETFs with staking rewards could be a catalyst for institutional participation and sentiment turns around. No reason to be calling tops right now," Magadini said.
Yahoo
13-05-2025
- Business
- Yahoo
Solana Block Traders See SOL Extending Gains, Surpassing $200 by End-June
SOL, the native cryptocurrency of the Solana programmable blockchain has staged a sharp four-week rally, surging 85% since April 7 — more than double the pace of bitcoin (BTC) — and large options traders are positioning for further gains. The token climbed to around $176 in recent days as crypto and traditional markets embraced a greater degree of risk. Bitcoin, the leading cryptocurrency by market value, has climbed 40%, CoinDesk data show. The gains are unlikely to reverse in the near future, if block traders — primarily institutions and market participants that execute large trading orders over the counter and outside of the public order book — are correct. They have snapped up the Deribit-listed June 27 expiry SOL $200 call option in large numbers, a sign they expect the price to rise above that level before the end of the first half. "Traders also got long the $200 June expiration last week. This was the biggest block trade, trading 50,000x contracts in total for $263,000 in premium," Greg Magadini, the director of derivatives at Amberdata, said in an email. On Deribit, one options contract represents one SOL. A call option gives the purchaser the right, but not the obligation, to buy the underlying asset at a predetermined price at a later date. A call buyer is implicitly bullish on the market. It's like buying a lottery ticket, where the holder has the chance to make significant gains if they win, while risking only the initial amount paid for purchasing the ticket. Magadini added that these call options were snapped up at an annualized implied volatility (IV) of 84%. In other words, traders timed it perfectly, snapping up calls while they were cheap as SOL's IV typically hovers in triple digits. Data shows that the demand for the $200 call option has left market makers or dealers with a significant net negative gamma exposure at the strike price. Market makers with a net negative gamma exposure typically buy as prices rise and sell during dips, aiming to rebalance their portfolios toward a delta-neutral, or market-neutral, position. Their hedging activities often amplify market swings. So it's likely volatility will pick up as SOL potentially crosses the $200 mark.
Business Mayor
28-04-2025
- Business
- Business Mayor
Solana: Why THIS analytics firm expects SOL to hit $200 in May
Amberdata's Greg Magadini projected SOL could hit $200 in May. Whale interest was positive but stagnant, with $160 as a key hurdle to overcome. According to crypto options analytics firm Amberdata, there were higher odds of Solana [SOL] crossing $200 by the end of May. In the firm's weekly market report, Greg Magadini, Amberdata's Director of Derivatives, wrote , 'The underlying spot market is going to dictate the market for now, hence, I still think buying these $200 5/30 calls as a great way to capture the edge.' Call options are bullish bets on an asset's future price targets (strike price). On the other hand, put options are deemed bearish bets on future price declines of the asset. SOL — Decoding $200 price target Source: Amberdata According to Magadini, dealers (market makers) were going long at the Gamma Level of $200, making it a key level to watch. Still, dealers couldn't cap SOL's likely rally from hitting the level because the asset's option market was still relatively small compared to the spot market. Additionally, he noted that implied volatility (expected future price swings) dropped significantly compared to the past weeks. This meant buying call options now, targeting the end of May, was cheaper and a 'decent' play, reiterated Magadini. 'Volatility has come down a lot…Again, a good argument for owning the $200 calls 30-days out.' He further pointed out that the rotation trend from ETH to SOL and pro-crypto SEC could be tailwinds for SOL's outperformance. AMBCrypto confirmed the SOL/ETH outlook. From the beginning of this cycle in late 2023, the SOL/ETH ratio has rallied and formed an ascending channel. This meant SOL outperformed ETH over the past few months. Source: SOL/ETH, TradingView In April alone, SOL's price performance outpaced ETH by about 28%. The trend could remain intact for the next few months or weeks unless the channel is broken. On the price chart, SOL saw increased whale interest, as illustrated by the Whale vs. Retail Delta indicator turning green. However, whale positions haven't increased as much as the price approached the $160 hurdle. For bulls to target $200, the $160 resistance must be cleared.
Yahoo
17-02-2025
- Business
- Yahoo
In a Lethargic Bitcoin Market, BTC $110K Option Play Emerges as Top Trading Strategy
Bitcoin (BTC) has been relatively listless this month, hunching below $100,000. However, this hasn't deterred traders from continuing to bet bullishly on the leading cryptocurrency. This month's most preferred options play has been buying the $110,000 call expiring on March 28, with buyers paying a cumulative net premium of over $6 million for the bullish exposure, according to the Deribit options flow tracked by Amberdata. A call option gives the buyer the right but not the obligation to purchase the underlying asset at a predetermined price on or before a specific date. A call buyer is implicitly bullish on the market, while a put buyer is bearish, looking to hedge downside risks. "Looking at the month-to-date flows for on-screen traders… the buying of March $110K calls has been the most active trade," Greg Magadini, director of derivatives at Amberdata, said in a note shared with CoinDesk. Bitcoin has mostly traded within a narrow range of $95,000 to $100,000 this month. The bulls have had some positive developments to chew on, like the continued accumulation by MicroStrategy and Abu Dhabi's recent reveal of a $436 million investment in the bitcoin ETFs. However, renewed macroeconomic headwinds, highlighted by last week's hotter U.S. inflation data and frequent liquidity drains caused by the boom-bust cycles of memecoins and other small-cap tokens, appear to be capping the upside potential. Over the weekend, a token called LIBRA zoomed to a market cap of over $4 billion, only to erase 90% of that within minutes. Argentina's President, Xavier Milei, initially promoted the coin late Friday but backtracked in a few hours, causing a controversy that has him facing legal issues in his home country. "Some bullish headlines hit for BTC last week, but that didn't materialize into any real spike higher for spot prices," Magadini said, referring to Abu Dhabi's investment. "Combine this news with bearish memecoin market drag (a source of bearish headlines) such as the $Libra drop, pump-fun mania and growing supply of alts [altcoins] and I see this market in stand-still. Together, this reinforces my 'sideways' market, lower volatility market thesis," Magadini added. Sign in to access your portfolio
