As the US election approaches, an institution bets $25 million on the Derive Bitcoin options market

An institution has made a $25 million hedge on Derive’s on-chain Bitcoin options market, betting that Bitcoin will continue to rise after the U.S. election on November 5. The deal involved a long options strategy that targets a Bitcoin price of $80,000 by November 29, making it the largest on-chain options trade related to the U.S. election to date. The institution bought 100 call options with a strike price of $70,000, while selling 200 call options at $80,000 and 100 put options at $50,000, all expiring on November 29. Derive co-founder Nick Forster said the deal demonstrated the flexibility and scalability of on-chain options trading, and that the strategy could make a profit of $1.02 million if the Bitcoin price reaches $80,000 on November 29. Derive currently accounts for 32% of the total options trading on decentralized exchanges, but the size of the on-chain options market is still relatively small compared to centralized platforms such as Deribit. (Coindesk)