According to Odaily, Adam, a macro analyst at Greeks.live, has shared his insights on the imminent expiry of a significant number of Bitcoin (BTC) and Ethereum (ETH) options. He revealed that 18,000 BTC options are set to expire with a Put Call Ratio of 0.65 and a maximum pain point of $61,500, representing a nominal value of $1 billion. Additionally, 164,000 ETH options are also nearing their expiry, with a Put Call Ratio of 0.36 and a maximum pain point of $3,350, amounting to a nominal value of $470 million.
Adam further commented on the recent downturn in the cryptocurrency market. He noted that the market had experienced a significant slump since the beginning of July, with major cryptocurrencies hitting several months' lows. This downturn coincided with the completion of quarterly deliveries, resulting in substantial market volatility and a significant increase in Implied Volatility (IV) for the main term. This situation presents a good opportunity for institutional sellers to build their positions.
The market sentiment is rather pessimistic, with the IV for bearish options on mainstream coins noticeably increasing. The term structure exhibits an inverted phenomenon, with the far term being lower than the near term. Adam also hinted at some clear news regarding the ETH ETF in the near future. He suggested that those interested in buying at the bottom could purchase some bullish options for the end of the month, as they offer a much better cost-performance ratio than going long on futures.