Bitcoin faces the expiration of 37,000 options contracts worth $1.58 billion on Friday, December 15, alongside 268,000 Ethereum contracts valued at $610 million.
Key Takeaways
- Bitcoin experiences the expiration of 37,000 options contracts worth $1.58 billion alongside 268,000 Ethereum contracts valued at $610 million on December 15.
- The put/call ratio is balanced at 1.02, with the max pain point for Bitcoin options set at $42,000, marginally lower than current spot prices.
- Protective options trading, resulting in larger Put positions than Calls, is noted due to a recent market pullback.
- Despite the market’s recent volatility, there are 23,000 calls at a $50,000 strike price on Deribit, indicating a prevailing bullish sentiment among derivatives speculators.
Bitcoin and Ethereum Options Expiry Day
As Friday arrives, the cryptocurrency market braces for the expiration of 37,000 Bitcoin options contracts valued at $1.58 billion, accompanied by 268,000 Ethereum contracts with a notional value of $610 million.
CRYPTO BREAKING NEWS
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This event follows a recent market rebound from a leverage flush earlier in the week, prompting speculation about the potential impact on crypto prices.
Bitcoin Options Details
The notional value of the Bitcoin options set to expire is $1.58 billion, with a put/call ratio of 1.02, indicating an equilibrium between sellers of puts (shorts) and calls (longs). The max pain point for these options is identified at $42,000, slightly below the current spot prices.
Greeks Live, a market analysis entity, highlights that a significant number of protective options were traded, leading to larger Put positions compared to Calls due to the recent market pullback.
Derivatives Speculators and Market Sentiment
Deribit data reveals 23,000 calls at a $50,000 strike price, signaling a prevailing bullish sentiment among derivatives speculators. This observation comes amid ongoing market shifts in BTC options, with IV showing minimal fluctuations over the past month.
The data collectively suggests that while there is cautiousness in the market due to recent events, including protective options trading and low IV, there remains an underlying bullish sentiment in Bitcoin option, as indicated by the concentration of calls at a $50,000 strike price.
To Conclude
As Bitcoin and Ethereum options expire on December 15, the market watches for potential price impacts. With a balanced put/call ratio and a max pain point at $42,000 for Bitcoin options, the current market sentiment reflects a cautious optimism, with derivatives speculators maintaining a bullish stance, as evidenced by the concentration of calls at a $50,000 strike price.
