Call options used to bet that Bitcoin will go over $50K next year
People writing those article should know better, it&#x27;s the wall street journal for god&#x27;s sake. Buying a call option doesn&#x27;t mean you&#x27;re bullish that the future is going to trade up to that point. It could be a hedge for a short position or a way to go gamma-long or a way to make a structure cost-less, or really some other trading idea.<p>The point is that if the price goes up, the call option price goes up faster, and then the trader can sell it before it reaches 50k. Liquidity though may be an issue.<p>EDIT: what matters is that it is _possible_ that bitcoin goes to 50k next year. And since it is possible, people need to take that possibility into account in their strategies. It&#x27;s like S&amp;P option strike range for dec18, it goes from 1700 to 3100. Is it likely that SP price goes down to 1700 in the next year? no, but it&#x27;s certainly possible.