• ARB token derivative markets are popping up on centralized and decentralized exchanges ahead of Thursday’s airdrop.
• Clober is offering traders put options with strike prices of 50 cents, $1, $2, $4, $8 and $16.
• The put options have an expiry date of March 24, allowing traders to bet on the first-day price action of ARB when trading goes live.
Arbitrum Put Options Let Traders Bet on First Day Price Action
A new wave of derivatives contracts has emerged in the run-up to Arbitrum (ARB)’s airdrop scheduled for Thursday 23rd March. Options marketplace Clober is offering traders the opportunity to purchase put options with strike prices of 50 cents, $1, $2, $4, $8 and $16. These have cumulatively seen over $50,000 in trading volumes in the past 24 hours since they were issued.
What Are Put Options?
Put options are a type of option that increases in value as the price of the underlying asset – such as a token or equity – falls. This allows investors to gain exposure to assets without buying them outright; rather than purchasing the underlying asset itself, traders can buy into puts which will increase in value if their prediction that the price will fall is correct.
ARBitrum Put Option Details
The ARB put options available from Clober have an expiry date of March 24th – one day after the claim event. This effectively means that traders can make bets on how ARB tokens will perform after they start being traded on exchanges following the airdrop event. As such it provides an easy way for investors to take advantage of potential gains should there be significant volatility when trading begins.
Why Are People Betting On The Airdrop?
Given that this is ARB’s first foray into public markets speculation has been rife regarding how it might be traded when it goes live later this week. Many believe that its initial trading session could be highly volatile due to both hype around its upcoming launch and uncertainty surrounding its long-term prospects given its brand new status as a decentralized asset class offering lucrative staking rewards for holders who stake their tokens through Arbitrum smart contracts on Ethereum mainnet..
The availability of put option contracts from Clober gives investors an opportunity to hedge against potential losses by betting against an increase in ARB’s market cap during its first day trading session; however it should not be forgotten that these are still speculative investments and carry a degree risk attached no matter what outcome may occur following Thursday’s launch event