$3.5 Billion Bitcoin and Ethereum Options Expire Tomorrow! What is the meaning?

Billions of dollars worth of contracts due to expire on Friday cryptocurrency Options traders are facing a massive expiration wave this week.

3.51 Billion Dollar Bitcoin and Ethereum Options Expire

According to Greeks.Live, a leading provider of crypto options trading tools, approximately 86,000 Bitcoin (BTC) option and 695,000 Ethereum (ETH) options are about to expire this week and their combined face value is $3.51 billion.

The put/call ratio, which measures the number of put options (bullish forecasts) versus put options (bearish forecasts), was 0.38 for BTC and 0.49 for ETH; This means that most investors expect prices to rise or remain stable.

“Maximum Pain Point”, the price level that will cause the most losses for option buyers and the most gains for options sellers, was recorded at $27,000 for BTC and $1,800 for ETH. The “Maximum Pain Point” often acts as a magnet for the market price, as options sellers try to push the price towards this point to minimize their payout.

The implied volatility (IV), which measures the expected price fluctuations of the underlying asset, is falling across all major maturities, suggesting that traders expect less volatility in the near future. The ultra-short-term IV for both BTC and ETH is approaching the ultra-low 30%, meaning investors expect little action over the next few days.

Greeks.Live also revealed that the distribution of expiry options includes a large amount of buy positions and prices are currently close to the max pain point. This represents a huge win for options sellers this month, especially in the context of the current market downturn and lack of hot spots.

*Not investment advice.

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