Bitcoin Options Expiry Insights: The impending expiry of Bitcoin options this Friday has sparked speculation about its impact on the market trend. The total open interest, including Ethereum options, is a staggering $730 million, indicating a volatile state in the crypto markets.
Today, around 14,000 Bitcoin options contracts, worth close to $400 million, are set to expire. While significant, this pales in comparison to last week’s expiry, which marked the end of the month and quarter.
The term “max pain” in the crypto sphere refers to the price level with the highest number of open contracts. For today’s Bitcoin options, this level sits at $27,000, around $500 below Bitcoin’s current spot price. It also signifies where the most significant losses might occur when the contracts expire. Today’s options have a put/call ratio of 0.89, indicating a near equilibrium between sellers of longs and shorts.
Those interested in Bitcoin derivatives trading can find valuable resources in guides like BeInCrypto’s.
Greeks Live, a market analytics platform, notes that while Bitcoin led this week’s upward trend, the overall implied volatility remains relatively low. They also attribute the reduced trading volume in Asian markets to holiday factors.
Historically, October and the concluding quarter have seen uptrends, but Greeks Live adds a note of caution, suggesting that significant market movements might be on the horizon this month given the high share of put positions and recent liquidity dip.
Ethereum Options Expiry Overview: Apart from Bitcoin, Ethereum will see the expiry of around 200,000 options contracts, worth $330 million, on October 6. This brings the combined total for Bitcoin and Ethereum options to an impressive $730 million.
The Ethereum contracts have a put/call ratio of 0.87, closely resembling BTC derivatives.
However, market experts believe that this week’s options expiry might not have a significant influence on the spot markets, which have been experiencing a decline. After temporarily surging to $28,500 on Monday, Bitcoin has witnessed a 3.5% dip and is currently trading at $27,485. Without any fresh stimuli, it’s likely that Bitcoin might gravitate towards the $27,000 support level.
On the other hand, Ethereum, after its Monday surge, has seen a 6.6% drop and is trading at $1,620 during Friday’s Asian trading hours. The support for Ethereum currently hovers just below the $1,600 mark.