More than $10 billion worth of Bitcoin and Ethereum options are expiring today in the cryptocurrency market, and this is drawing the attention of market observers. Because the volume and par values of these options contracts have the potential to have a significant impact on short-term market trends. In addition, put/call ratios and maximum pain points also provide some clues about possible changes in the market direction.
Bitcoin and Ethereum Options Expire Today!$ETH
The notional value of Bitcoin options expiring today is set at $9.47 billion. According to Deribit data, the put/call ratio of 98,309 Bitcoin options is at 0.84. This shows that call options are more dominant than put options. It is also stated that the maximum pain point for these expiring options is $80,000. The maximum pain point is defined as the price level at which most options expire worthless and the largest number of investors lose.
In addition to Bitcoin options, the total notional value of the 412,116 Ethereum options contracts expiring today is $1.47 billion. The put/call ratio for Ethereum is 0.75. Meanwhile, the maximum pain point for Ethereum is at $2,900. Currently, Bitcoin is trading at $96,353, while Ethereum is trading at $3,573. This means that if the options expire at these levels, option holders will generally experience losses. The amount that option traders will earn or lose can vary significantly depending on the specific strike price and position. Therefore, investors should consider current market conditions and all option positions to correctly evaluate the potential gains or losses at expiration.
Analysts at the options trading platform Greeks.live say the market is showing an interesting outlook. Expressing optimism among investors, analysts comment, "There is an 11% pullback in Bitcoin, but 10 days ago the same people were talking about buying opportunities during the pullback." Greeks.live CEO Jeff Liang says he is ready to wait until the options expire and is closely following the market movements. "The implied volatility of the offer is close to the historical volatility of the last month and is not too expensive. A $5 increase in the spot price can provide balance. I am ready to wait until the expiration. I bought call options last night and the market started to move in the morning," Liang says.
Optimism is increasing in the crypto markets, especially according to Bybit. This optimism is said to be due to the expectation of a more crypto-friendly SEC Chairman after the resignation of SEC Chairman Gary Gensler. Bybit adds that while there is a correction in the Bitcoin price, the expiration of Ethereum options indicates a moderate upward trend.
Bybit says that after BTC fell to $100,000, the ATM volatility term structure has flattened, with short-term options volatility falling below 60%. This reflects a pattern observed since the US election, with open interest in call and put options remaining unchanged as volatility fell. This week, demand for short-term options has been on hold, with Ethereum options appearing slightly more bullish than Bitcoin options. Markets have rebalanced from the post-election high, but call options continue to lead in both volume and open interest.