Crypto Traders Place Bets on Bitcoin Rebound

The downturn in Bitcoin's value has led to increased trading volumes in related stocks, as investors and analysts weigh in on the cryptocurrency's prospects.

One notable development is the use of diagonal strategies by traders in Strategy and Coinbase. In the case of Strategy, a trader sold call options with a strike price of $125 expiring in August, while buying call options with a strike price of $180 expiring in June. This setup is most profitable if Strategy's shares drop below $125 through August expiration.

For its part, Coinbase saw significant trading activity, with one trader placing a large bet on the stock's potential rebound. Using a similar diagonal strategy, this trader sold call options with a strike price of $160 expiring in June, while buying call options with a strike price of $183.40 expiring in August.