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Trader Buys $2M Worth of Dogecoin Call Options as Meme Coin Market Heats Up

May 28, 2024
    The $2 million purchase of call options is seen as a bullish bet on dogecoin.The contract will expire in 16 days, in which time DOGE has to rise by 31% to avoid expiring worthless.Dogecoin last touched $0.22 in March, but hasn’t surpassed that level since November 2021.
As a seasoned crypto investor with a keen eye for market trends, I see the recent $2 million purchase of dogecoin (DOGE) call options as a bold and potentially profitable bet on this popular meme coin. With a strike price of $0.22 and a contract expiration date of June 14, the trader is placing a bullish wager that DOGE will surge by over 31% within that timeframe.As a crypto investor, I recently made an intriguing move by purchasing call options for Dogecoin (DOGE) worth $2 million at a strike price of $0.22 on Wednesday, based on the latest updates from Bernd Sischka, the chief commercial officer at PowerTrade derivatives exchange.

The current Doge price stands at $0.166. My previously bought call options are set to expire on June 14th. For this trade to turn a profit, Doge must surge past its current value by over 31%.

As a crypto investor, I can explain options as follows: Options are contracts that grant me the privilege, not the obligation, to buy or sell a specific cryptocurrency at a set price before the contract’s expiration date. If the value of the underlying asset fails to reach this predefined price, the option simply expires and is deemed worthless.

As an analyst, I’ve noticed an intriguing development in the meme coin market. Yesterday saw a bullish trend across this sector, which can be attributed to the sudden surge in Gamestop (GME) shares. This stock, well-known for its meme status and frequent correlation with meme coins, experienced a significant price increase that seems to have sparked renewed interest and buying activity within the meme coin community.

Dogecoin hit a local high of $0.22 in March, but hasn’t surpassed that level since November 2021.

Sischka expressed his belief that altcoins have been trailing behind Ethereum’s recent price surge. For many traders, Ethereum’s movements are indicative of potential trends for alternative cryptocurrencies. The approval of the Ethereum ETF sparked this rally, but Dogecoin could be an exception due to Elon Musk’s potential involvement in making it a payment currency on Twitter.

As a crypto investor, I’ve witnessed Dogecoin hitting a rock-bottom price of $0.056 back in October 2023. But just as the crypto industry started to pick up steam with the long-awaited approval of a spot BTC ETF in the U.S., Dogecoin began an impressive rally, surging by over 195%.

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2024-05-29 18:30