• A trader bought two million dogecoin (DOGE) call options at a strike price of $0.22 on Wednesday
• The call options expire on June 14, meaning DOGE needs to rise by more than 31% for the trade to be profitable
• The trade comes after a bullish day for meme coins following a surge in the price of meme stock GameStop (GME)
A trader has made a bullish bet on dogecoin by purchasing a large number of call options contracts. This comes as the meme coin market sees renewed interest.
Details of the Options Purchase
- The trader bought 2 million DOGE call options at a strike price of $0.22 on Wednesday.
- The options expire on June 14, so DOGE needs to rise 31% from the current $0.166 price to be profitable.
- Options give the buyer the right to buy DOGE at $0.22 before expiration. If DOGE stays below that, the options expire worthless.
Context Behind the Trade
- This options purchase comes after a bullish day for meme coins like DOGE.
- Meme coins often move in tandem with meme stocks like GameStop, which jumped in price recently.
- DOGE hit $0.22 briefly in March but hasn’t passed that level since November 2021.
- According to derivatives exchange PowerTrade, the trade is a bullish bet that taps into momentum across meme assets.
The Potential Catalysts for a DOGE Price Surge
- Altcoins like DOGE may rally to catch up with Ethereum’s recent gains after the ETF launch.
- Speculation that Elon Musk could add DOGE as a payment option on Twitter is another potential catalyst.
- Overall, the crypto market is in a bull cycle after BTC ETF approvals brought new money in.
The Outlook for DOGE and Meme Coins
- DOGE is up 195% from its October low despite recent sideways trading.
- The meme coin sector continues to see interest from traders looking to ride sudden rallies.
- This options trade is a big bet that DOGE and its peers have more room to run.
So in summary, the purchase of 2 million DOGE call options shows the enduring appeal of meme coins for speculative traders looking to profit from volatility. The trader is betting on a specific price surge before mid-June, but the broader activity highlights the potential for additional rallies across dogecoin and other similar assets.
