Options data shows bullish sentiment among traders
According to The Block, the open interest structure of Ethereum options on the cryptocurrency derivatives trading platform Deribit shows that a large number of Ethereum call options were concentrated at the end of June, with a total of more than 617,000 contracts and a notional value of more than $1.8 billion.
The large number of call contracts and their large notional values may reflect the market’s confidence that Ethereum will rise ahead of its end-June expiration date. This concentration of call options could also support the price of the digital asset if derivatives traders choose to exercise their options if the price begins to move above a specific strike price.
Call option strikes concentrated above $3,600
On the other hand, strike prices for call options expiring at the end of June are mostly concentrated above $3,600, according to CoinShares researcher Luke Nolan. Of these, $6,500 is the most popular strike price.
The analyst highlighted that open interest is largest at the 6,500 strike price, with a notional value of $192 million, reflecting some traders’ confidence in Ethereum’s ability to reach or exceed this level.
The put-call ratio suggests bullish sentiment
The data also shows that open interest in call options is increasing compared to puts ahead of the end-June expiration date. When the put-to-call ratio is below one, it means that call volume exceeds that of puts, indicating bullish market sentiment. According to The Block’s data dashboard, the current put-to-call ratio for Ethereum on Deribit is 0.41.
(This article is reproduced from GT Radar with permission)
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This article Massive Ethereum Call Options Concentrate in June with Strike Above $3,600 appeared first on Zombit.
