A major Bitcoin options exchange anticipates a shift from the current regime of low volatility to a period of increased price fluctuationspotentially exceeding the $53,000 to $87,000 range. The operation saw the entity pay a net premium of more than $1 million to purchase 100 contracts of the $66,000 strike call and put options expiring on Nov. 29, according to data confirmed by Lin Chen, Head of Business Development in Asia at Deribit. A long straddle is best when the market is expected to move enough in one direction or the other for the call or put option to be worth more than the cumulative premium paid. For the strategy to become profitable and overcompensate for the premium paid, the price of bitcoin must exceed $87,000 or be below $53,000 by the end of November, Chen told CoinDesk.
