A trader has purchased two million dogecoin (DOGE) call options with a strike price of $0.22, as reported by Bernd Sischka, Chief Commercial Officer at derivatives exchange PowerTrade. These options, set to expire on June 14, represent a bullish bet on dogecoin, requiring the meme coin to increase by more than 31% from its current trading price of $0.166 to be profitable.
Options are derivative contracts that give the buyer the right to buy or sell an asset at a predetermined price before the contract expires. If the underlying asset doesn’t reach the strike price, the contract expires worthless.
This significant trade comes amid a bullish wave across the meme coin sector, spurred by a sudden rise in the share price of GameStop (GME), a meme stock that often correlates with meme coins. Dogecoin last reached $0.22 in March, but it hasn’t surpassed this level since November 2021.
“Altcoins have been lagging behind the recent run-up in Ethereum. Most traders look at Ethereum’s movements to predict potential moves for altcoins,” Sischka explained. “The ETF approval drove the ETH rally, but for doge, the wildcard is Elon Musk potentially adding it to Twitter as a payment currency.”
Since hitting a low of $0.056 in October 2023, dogecoin has surged by over 195%, fueled by the crypto industry’s bull market, driven by the approval of spot BTC ETFs in the U.S.
