Bitcoin and Ethereum Options Expiring — What to Expect
Today, more than $10 billion worth of Bitcoin (BTC) and Ethereum (ETH) options are set to expire.
Market watchers are particularly concerned about this event because of its potential to influence short-term trends through contract volume and their notional value. Examining the put to call ratio and top pain points can provide insight into trader expectations and likely market direction.
Bitcoin and Ethereum options expire today
The notional value of BTC options expiring today is $9.47 billion. According to Deribit data, the put-to-call ratio for these 98,309 expiring Bitcoin options is 0.84. This ratio indicates that there are more options to buy (calls) than to sell (puts).
The data also shows that the biggest pain point for these expiring options is $80,000. exist Cryptocurrency Options Tradingthe biggest pain point is the price at which most contracts expire worthless. Here, the asset will cause financial losses to the maximum number of holders.
In addition to Bitcoin options, there are 412,116 Ethereum options contracts expiring today. The notional value of these expiring options is $1.47 billion, with a put-to-call ratio of 0.75. The biggest pain point is $2,900.
Bitcoin and Ethereum’s current market prices are above their respective biggest pain points. Bitcoin is trading at $96,353 And ETH is located in $3,573. This suggests that if an option expires at these levels, it usually means the option holder suffers a loss.
The result is options trader Depending on the specific execution price and the position they hold, it can vary significantly. In order to accurately assess potential gains or losses at expiration, traders must consider their entire options position as well as current market conditions.
Insights into today’s expiring BTC and ETH options
Analysts at Greeks.live, a provider of options trading tools, revealed an interesting outlook for investors, suggesting that a thorough evaluation is crucial before jumping to conclusions.
“Bitcoin price is down 11% and people are saying the end is near. Less than 10 days ago, the same people were calling for pullback buys,” they wrote.
Jeff Liang, CEO and co-founder of Greeks.live, expressed optimism, saying he was prepared to hold until the option expires at 8:00 UTC on Friday.
“Despite the wide spread, the quotes imply volatility This is comparable to historical volatility over the last 1 month, so pricing is not overly high. A 5% increase in spot prices can offset the spread. I’m prepared to hold until expiration. I bought a bunch of call options last night and there was some action in the market this morning. “Liang explain.
Meanwhile, the cryptocurrency market remains slightly optimistic. Bybit said in a statement shared with BeInCrypto that this optimism may be attributed to investor expectations for a more crypto-friendly SEC chairman. Gary Gensler resigns.
Against this backdrop, Bybit also commented on the current market outlook, noting that the correction in Bitcoin prices and the impending expiration of ETH options indicate that bullish sentiment has moderated.
“BTC’s pullback from the $100,000 mark has flattened the ATM volatility term structure, with short options falling below 60%. This mirrors the pattern observed since the US election. Lower realized volatility explains this Decline. While open interest for calls and puts remains unchanged, demand for short-term options has stalled slightly over BTC. Options. Markets have corrected after post-election highs, but calls still lead in terms of volume and open interest,” Bybit additional.
ATM IV refers to the implied volatility of an option contract with a strike price equal to the current market price of the underlying asset. Analysts and traders often use this specific type of IV (implied volatility) to measure market sentiment and underlying volatility expectations. Safety.
Therefore, traders are advised to remain cautious as option expirations have historically tended to lead to short-term instability in the market. Weekends are also crucial because they are characterized by low trading volumes and high volatility.
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