Part 6/14:
He considers hedging this risk with call options, which give the right (but not the obligation) to buy at a specified strike price—say $200,000—by a certain expiration date. The goal is to offset potential losses if Bitcoin’s price exceeds that strike.
They discuss market pricing of options, which often reflect market sentiment—cheaper options imply skepticism about reaching the target, while more expensive ones indicate higher anticipated volatility or confidence in hitting the mark. Interestingly, contracts priced around $20,000-$24,000 for strike prices like $300,000 reflect market expectations, but are also influenced by liquidity, market volatility, and trader sentiment.