All articles tagged with #bullish bets
Hedge funds and money managers have increased their bullish bets on gold to the highest level in four years as the price of the precious metal continues to reach record highs. Their net-long positions in US bullion futures and options surged 13% in the week ended April 2, marking the highest level since 2020, according to Commodity Futures Trading Commission data.
The launch of options on Reddit drew a surge of bullish bets, leading to a 30% surge in Reddit shares on Monday. The options trading leaned towards bullish bets, with calls conveying the right to buy shares at a fixed price in the future being the most actively traded contracts. Analysts suggested that the bullish options activity may have contributed to the stock rally, as dealers who sold the calls hedged their risk by buying the stock as it advanced. This surge in options activity is reminiscent of the trading seen in meme stocks like GameStop, but experts believe a direct connection is unlikely.
The launch of options on Reddit drew a surge of bullish bets, propelling the social media platform's stock up by 30% on the New York Stock Exchange, following last week's strong market debut. With 90,000 Reddit options changing hands, the trading leaned towards bullish bets, particularly on call options with strike prices of $50 to $75. Analysts noted that the bullish options activity may have contributed to Monday's stock rally, with some drawing parallels to the options dynamic seen in meme stocks like AMC Entertainment and GameStop.
Traders are flocking to bullish bets on Bitcoin, with many placing options contracts that will profit if the cryptocurrency trades above $70,000 by June 28, and some even eyeing $100,000 by the summer. The surge in demand for spot Bitcoin exchange-traded funds has also been notable, with significant inflows in the US market. The options data from derivatives platform Deribit indicates a strong bullish sentiment among traders, with open positions on various price targets, including $60,000, $65,000, $70,000, $75,000, and $100,000 by the expiration date in June.
Traders are increasingly placing bullish bets on Bitcoin surpassing $50,000, with over 47,000 open call options at that strike price. Open interest in Bitcoin options has surged in the past two weeks, indicating a growing speculative inclination among investors. Demand for bearish bets has also increased, pushing the put-call ratio higher. Bitcoin prices have remained near their highest level since April, driven by hopes of a spot Bitcoin exchange-traded fund approval and expectations of a Federal Reserve interest rate cut.
Traders are increasingly taking on risky bets, fueled by optimism in the market boom and positive economic data. Cash and hedges are being replaced by demand for stocks, small caps, and meme stocks, while hedging metrics show low demand for downside protection. However, some experts caution that the euphoria may be overdone, and potential hazards still loom. The Treasury market has seen an expansion of short bets, and negative surprises could have an outsized influence. Nevertheless, the market momentum is strong, with revised upward targets for the S&P 500 and softened dire predictions from economists.
Ether options trading volume has surpassed Bitcoin for the first time in 2023, with nearly 60% of global crypto options activity and 50% more than Bitcoin's notional trading volume. The increased demand for Ether calls is evident from the short-term and long-term options skew, which have flipped positive, signaling a renewed bias for bullish call options. The latest pick-up in activity in the Ether options market comes on the heels of Ethereum's successful implementation of the highly-anticipated Shanghai upgrade on Wednesday, which has opened withdrawals of over 18 million Ether staked in the network since December 2020, de-risking staking.