2023-05-19 22:44:54
Bitcoin (BTC): $780 million worth of options expire today. How will the price react?
BeInCrypto – A large number of (BTC) futures contracts expire this Friday (19). How can this impact the price of the asset?
Derivatives traders returned to Bitcoin options after a month or so, favoring . As a result, 29,000 BTC options are about to expire this week.
bitcoin options
These contracts have a notional value of $780 million and a maximum point of $27,500, as reported by GreeksLive. Bitcoin options are derivative contracts that allow traders to speculate on the price of cryptocurrency without having to buy it.
Furthermore, they allow derivatives traders to buy or sell Bitcoin contracts at a specific price, the strike price, on a certain expiration date. Also, they are more flexible than futures with fixed expiration dates.
The maximum value is the price with the most open contracts. It is also the price at which the greatest number of losses will occur upon expiry of the contract. Also, the bid/ask ratio for this batch of Bitcoin options is 0.81.
The put/call ratio is calculated by dividing the number of put (sell) contracts traded by the number of call (buy) contracts. A value below 1 is considered bullish as more traders are buying longs than shorts.
Additionally, Deribit is reporting a total open interest of 308,044. Open Interest refers to the total number of open contracts that have yet to expire.
There are also around 169,000 Ethereum options about to expire. They have a notional value of $310 million and a maximum point of $1,800. The put/call ratio for contracts is 0.96, which is more neutral than the BTC ratio.
GreeksLive commented on the overall outlook:
“Overall total positions data were relatively stable, but the proportion of short positions has started to increase, and bearish traders are gradually gaining ground after a sustained sideways move.”
price movement
Bitcoin operates down 2% on the day, falling to $26,800 at the close of the story. The asset has been consolidating in recent weeks after reaching an annual high of $31,000.
Ethereum was holding around the $1,800 level currently. Markets are still sideways with support at current levels. However, if support is lost, BTC could drop to $24,000 as some on-chain analysts predicted.
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