Trader Purchases 2M Dogecoin Call Options Amid Meme Coin Market Surge

Dogecoin Trader Places Bullish Bet With $0.22 Call Options

According to Bernd Sischka, Chief Commercial Officer of derivatives exchange PowerTrade, a trader has acquired two million dogecoin (DOGE) call options with a strike price of $0.22. These options expire on June 14 and reflect a bullish outlook on dogecoin.

To be profitable, the meme coin needs to rise by over 31% from its current trading price of $0.166. Call options grant buyers the privilege to purchase an asset at a predetermined price within a specific timeframe. If the underlying asset does not reach the strike price by expiration, the option becomes worthless.

This substantial trade coincides with a bullish trend in the meme coin sector, influenced by a surge in GameStop (GME) share prices. Dogecoin last touched $0.22 in March but has remained below that level since November 2021.

Sischka observes, "Altcoins have lagged behind Ethereum's recent upswing. Traders often look to Ethereum's movements to gauge potential altcoin behavior. The ETF approval propelled ETH, but for doge, Elon Musk's possible addition of it as a Twitter payment option is a wild card."

Since reaching a low of $0.056 in October 2023, dogecoin has surged by over 195% due to the bullish market driven by the approval of spot BTC ETFs in the U.S.