Traders are showing a strong interest in ApeCoin (APE) call options on the altcoin-focused derivatives exchange PowerTrade. Some traders have purchased call options at $2.2, indicating their bullish expectations for the cryptocurrency. APE, the governance and utility token of the APE ecosystem, has seen its value double to $1.50 since the weekend, which has also contributed to the overall bullish sentiment in the market.
The surge in options activity on PowerTrade suggests that this bullish momentum is expected to continue in the short term. Open interest in APE options contracts has increased by over 800% to 263,000 in just one day, with call options accounting for over 80% of the total. Call options provide traders with the opportunity for significant upside potential, reflecting their positive outlook on the underlying asset.
Most of the trading activity is focused on the Oct. 22 and Oct. 25 expiry contracts, with traders purchasing higher strike out-of-the-money (OTM) calls at prices as high as $2.2, nearly 50% above APE’s current market price. Despite APE’s relatively small market capitalization of $1 billion, the increased interest in its options signals a growing sophistication in the altcoin space.
The optimism surrounding APE is likely driven by the upcoming Apechain mainnet launch and LayerZero’s integration. PowerTrade offers USD-settled options with one contract representing 1 APE as the underlying asset. The exchange introduced the request-for-quote (RFQ) model for the options market in late 2022, enabling the execution of multi-legged strategies in a single instrument.
On Monday, PowerTrade recorded a record trading volume of $50 million in options tied to 44 altcoins and plans to expand its offerings to include options linked to other altcoins such as EIGEN, APT, ARK, and PYTH. This increased trading activity and expansion of options offerings demonstrate the growing interest and participation in the altcoin derivatives market.
Overall, the surge in APE options trading on PowerTrade reflects the market’s positive outlook on the cryptocurrency and the broader altcoin space. With upcoming developments and new offerings on the horizon, traders are positioning themselves to capitalize on potential price movements and opportunities in the altcoin market.
