A trader has bought two million call options on %Dogecoin (CRYPTO: $DOGE) as the current rally in meme coins gathers steam.
The options trader took out the call option on Dogecoin at a strike price of $0.22 U.S., which is nearly 40% higher than the cryptocurrency’s current price of $0.16 U.S.
Call options are bets that an asset’s price will rise within a certain period. In this case, the call option on Dogecoin expires on June 14.
If Dogecoin doesn’t reach $0.22 U.S. by June 14, the options contract will expire worthless.
The bullish bet on Dogecoin comes amid a broader rally in meme coins that also includes %PepeCoin (CRYPTO: PEPE) and Mog (CRYPTO: MOG).
Dogecoin has not traded at $0.22 U.S. or higher since November 2021.
However, after bottoming at $0.05 U.S. last October, Dogecoin’s price has risen by more than 195% as the cryptocurrency industry re-entered a bull market.
The current rally in meme coins was ignited by a sharp rise in meme stocks over the last few weeks, led by shares of video game retailer %GameStop (NYSE: $GME).
