A trader paid over $2 million in premiums to buy options, bullish on Ethereum rising to $3,400 by the end of June.

BlockBeats News, on June 6, according to data from crypto options trading platform Deribit, a trader paid a premium of more than $2 million on Thursday to buy 61,000 Ethereum call options expiring at the end of June with strikes of $3,200 and $3,400. Theoretically, buying a $3,200 call option is a bet that the price of Ethereum will rise from the current $2,460 to more than $3,200 by the end of the month. Buying a $3,400 call option indicates that the price is expected to break through this level. In other words, the trader expects the price of Ethereum to rise by more than 30% in three weeks. A call option gives the purchaser the right (but not the obligation) to buy the underlying asset at a predetermined price in the future. Call option buyers are usually bullish on the market and pay a premium for an asymmetric upside gain. In this example, the $2 million premium is the maximum amount that the buyer could lose if the market didn’t rise as expected.