$2.7 Billion in Bitcoin and Ether Options Set to Expire

On May 24, a significant number of Bitcoin and Ether options will expire, shedding light on current sentiment in the cryptocurrency market. Data from Greeks.live reveals that approximately 21,000 Bitcoin (BTC) options are due for expiration, displaying a put/call ratio of 0.88. This ratio points to a nearly even distribution between buyers and sellers, with a slight leaning towards call options. The maximum pain point, or the price at which most option holders would incur losses, is pegged at $67,000, amounting to a nominal value of $1.4 billion.

Despite the noteworthy expiration of the 21,000 contracts, a larger, more impactful event looms on the horizon. On May 31, an impressive $4.3 billion worth of options contracts are set to culminate, as indicated by Deribit. Insights from Deribit show that long positions dominate the scene concerning open interest (OI), with an $830 million attachment to the $70,000 strike price. Further emphasizing the bullish trends, higher strike prices like the $100,000 mark also show substantial OI, totaling $843 million.

Interestingly, the $60,000 strike price emerges as the most crucial for put contracts, holding $388 million in open interest. The significant OI points to numerous unsettled contracts, highlighting that the bulls anticipate much higher Bitcoin prices. The unresolved value of contracts, reflected in the open interest, supports the bullish stance within the market.

The options expiration event is not exclusive to Bitcoin; Ethereum (ETH) is also seeing substantial activity with 350,000 Ether contracts expiring, encapsulating a notional value of $1.3 billion. The put/call ratio for Ethereum options stands at 0.58, alongside a max pain point of $3,200. This ratio suggests a slightly bullish sentiment, with a greater number of call options expiring compared to put options.

Ethereum has recently made notable strides in the crypto landscape, buoyed by progress related to exchange-traded funds (ETFs). This development led to a one-day surge of 20% in Ethereum’s value. During this period, the short-term options implied volatility (IV) for Ethereum skyrocketed to 150%, far surpassing Bitcoin’s IV for the same timeframe.

A divergence between the two leading cryptocurrencies is appearing. While Ethereum maintains a strong bullish outlook, the extended market structure and overall trading patterns complicate the maintenance of high IV levels over extended periods. This complexity implies that strategies like calendar spreads, which balance varying expiration dates, might be more suitable.

Bitcoin exhibits a more balanced approach between long and short positions. The selling forces within call options remain robust, suggesting a more stable sentiment compared to the exuberance seen in Ethereum. This balance indicates a more level-headed outlook among Bitcoin traders.

In summation, the upcoming options expirations for both Bitcoin and Ethereum are critical in understanding prevailing market sentiments and future price expectations. The data reveals bullish tendencies, especially in higher strike prices, although long-term sustainability of these sentiments remains to be seen. The varying implied volatilities between Bitcoin and Ethereum highlight different market dynamics, which could shape trading strategies moving forward.

Vinnie Glazier

Vinnie Glazier

21 thoughts on “$2.7 Billion in Bitcoin and Ether Options Set to Expire

  1. Ethereum’s implied volatility being so high compared to Bitcoin is a major red flag. 🚩 It means people are just gambling at this point.

  2. This is just more proof that the crypto market is overly speculative. 😒 The constant fluctuations make it impossible to trust it for the long-term.

  3. Calendar spreads and balancing strategies? Sounds like complex jargon to justify unpredictable markets and trick investors.

  4. These articles that cheerlead for crypto need to be more honest about the risks. ⚠️ Investors deserve to know the potential for significant losses.

  5. The fact that so much open interest exists for such high strike prices is concerning. It just points to unrealistic expectations.

  6. The divergence between Bitcoin and Ethereum strategies is fascinating. Different dynamics at play!

  7. The varying implied volatilities indicate diverse strategies. Educational and exciting! 📘🎢

  8. Impressed by Ethereum’s ETF-related progress. The market is maturing!

  9. These numbers don’t reflect real value. 😤 It’s all just paper money until people try to cash out and the market plummets.

  10. Loving the bullish sentiment for higher strike prices. Here’s hoping for more gains! 📈🤑

  11. Watching the market closely for May 24 and 31. Exciting times ahead!

  12. The difference in volatility between Bitcoin and Ethereum is a bad sign. It suggests these markets are becoming increasingly unstable.

  13. Ethereum’s IV at 150% is mind-blowing. High volatility, high rewards! 🌀💰

  14. A balanced approach between long and short positions in Bitcoin is smart. Shows maturity!

  15. Bitcoin traders seem more level-headed. Balanced sentiment is key! 🧠💼

  16. That $70,000 strike price for Bitcoin is particularly telling. Bulls are hopeful!

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