A Big Whale In Dogecoin (DOGE) Bought 2 Million Call Options For This Price Level – Does It Know Something?

A trader acquired two million Dogecoin (DOGE) call options with a strike price of $0.22, as authorized by Bernd Sischka, the Chief Commercial Officer of derivatives exchange PowerTrade.

Presently, DOGE is valued at $0.1649. For this transaction to be profitable, the memecoin's price would need to rise by over 31%. Call options expire on June 14th.

Options are derivative contracts bestowing upon the buyer the right to purchase or sell an asset at a set price before contract expiration. If the asset's price fails to reach the strike price, the contract becomes void.

Related News: 2 Billion Dollar Earthquake in Bitcoin and Cryptocurrencies: Finally Resolved

Dogecoin briefly attained the $0.22 mark during its March rally. However, it has not surpassed this level since November 2021.

Sischka provided his perspective on the altcoin market: "Altcoins have not kept pace with Ethereum's recent upswing. Most traders are watching ETH's performance to gauge potential altcoin movements." He also attributed the ETH rally to the approval of the ETF. Nonetheless, he views Elon Musk's use of Dogecoin as a payment option on Twitter as a potential catalyst.

*This information does not constitute investment advice.