Crypto investors beware: Options are expiring.
As of November 29, $10.95 billion worth of Bitcoin (BTC) and Ethereum ($ETH ) options that could affect cryptocurrencies are expiring.
This situation is being closely monitored by investors as it could affect short-term price movements. By examining the volume and values of the contracts, important clues can be obtained about investors' expectations and the likely direction of the market.
The total notional value of Bitcoin options expiring today is $9.47 billion. According to Deribit data, the put-to-call ratio of these 98,309 Bitcoin options was calculated as 0.84. This ratio shows that there are more call options than put options.
The data also reveals that the "maximum pain point" for these options is $80,000. In crypto options transactions, the maximum pain point refers to the price level at which the vast majority of contracts become worthless. This level is the price point where investors' financial losses are the highest.
On the Ethereum side, there are 412,116 option contracts expiring today, and the notional value of these options is $ 1.47 billion. The put-to-call ratio of #Ethereum options was recorded as 0.75. The maximum pain point was determined as $ 2,900 for Ethereum.
The current market prices of Bitcoin and Ethereum are above these maximum pain points. Bitcoin is currently trading at $ 96,353, while Ethereum is trading at $ 3,573. This situation generally indicates a loss for investors if the options expire at these levels.
The total value of Bitcoin and Ethereum options expiring today is large enough to affect market trends. In particular, the difference between the maximum pain points of the options and market prices shows that investors should pay attention to risk management. On the other hand, investors can profit from this volatility period by focusing on the general sentiment of the market.