Options contracts are among the important topics followed in the world of Bitcoin and crypto money. As of today, the options will expire. So how will this affect the price?
Bitcoin options are closing
Most BTC options contracts are about to expire. The maximum point for Bitcoin options contracts is at $27,000. Recently, there has been talk of traders making profits in the market. Accordingly, it is also possible that the outlook is increasingly pointing to higher levels.
Approximately 86,000 Bitcoin options contracts will expire on May 26. Their numerical value is $2.26 billion and the maximum risk point is $27,000. The maximum risk point is the strike price of the most open Bitcoin options contracts. This is the price at which the greatest loss will occur for the largest number of contract holders at maturity. In this context, the relevant point is also called the pain point.
BTC option rates
The sell/buy ratio (PCR) for this Bitcoin options group is 0.38. This ratio is calculated by dividing the number of short contracts traded by the number of long contracts. Accordingly, values below 1 are generally considered bullish. Because more speculators buy more call options than put options. This indicates that investors are predicting an uptrend going forward. The number of expired call contracts is much higher than that of expired put contracts.
According to Deribit, the total open interest for Bitcoin, that is, the total number of derivative contracts that have not yet been closed, is 325,311. Accordingly, Deribit reported that the sell/buy ratio was 0.44. This is also an indication of the bullish trend among derivatives traders. There are also 695,000 Ethereum options contracts that are about to expire. Their numerical value is $1.25 billion and the maximum risk point is $1,800. Also, the PCR for Ethereum options is at 0.49. This is largely in favor of call (long) contracts. GreeksLive explains it this way:
“Looking at the distribution of options contracts that are about to expire, the ratio of buy positions is huge. Therefore, prices are currently close to the maximum risk point. This month was a big win for options sellers. Especially in the context of the current market downturn and the lack of hot spots, options sellers are probably the ones making the most profitable trades.”
Bitcoin price dropped just below $26,000, its ten-week low, in late trading on Thursday. However, it rose back to $26,423 in the Asian trading session on Friday morning. According to Glassnode, the asset has dropped to a key long-term Fibonacci support level at 61.8%. Accordingly, the relevant level is associated with $26,200. However, a drop from here could push the price further down. Analysts also predict that if the selling pressure continues, BTC could drop to $24,400. When we look at Kriptokoin.com, Bitcoin is trading at $ 26,400 at the time of writing.
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