Crypto traders and investors are expected to see around $3 billion worth of Bitcoin (BTC) and Ethereum (ETH) options set to expire today.
Options expiring can cause big price changes, so people in the crypto market should watch what happens today closely and consider changing their trading plans around 8:00 UTC.
$2.95 Billion Worth of Bitcoin, Ethereum Options Reach Expiry
Data on Deribit indicates that around 26,949 Bitcoin contracts are set to expire today. The expiring options have an estimated value of around $2.6 billion.
The most unfavourable price point at which the fund will cause financial losses to the highest number of holders is $91,000. At this point, most of the deals will end up being worth nothing.
Bitcoin’s ratio of puts to calls is 1.01. This indicates a negative outlook as investors create more sales (Put) than purchase (Call) orders.
On the other hand, Ethereum’s put-to-call ratio is 0.92, showing that most traders are feeling optimistic about ETH. According to data from Deribit, 184,296 Ethereum contracts will expire today. These contracts are worth about $340.7 million, and the price at which most traders lose money is $1,800.
At the time of reporting, Ethereum has observed a small rise of 2.27% since Friday’s session started, to trade at $1,848.
Even though there are more Bitcoin sales calls than buy calls, experts at Greeks.live say that the overall mood in the market is mostly positive. They also observed that most of the traders look for a push in the direction of $100,000, pointing to low volatility and market setup.
With low instability, traders observe chances for long positions. According to Greeks.live, market makers are offering calls at 30% implied price fluctuation to collect gamma while leverage is still down. This indicates a possible surge, with traders predicting that interest rates will decrease more.
Collecting gamma means selling options to make money when prices stay stable, handling small price changes, and earning fees in a market with low price swings.
With ETH performing worse than BTC, few traders are betting against it. On the other hand, others concentrate on BTC’s small increase and examine July instability positions for vega gains. This indicates a tactical division in the market approach.
Vega highs happen when option prices increase because of increased price instability, which advantages traders holding options with increased volatility exposure.
On the other hand, experts at Deribit accept that few traders are monitoring Bitcoin’s gradual growth. Considering this situation, there is a notable accumulation of Bitcoins above $95,000.
At the time of reporting, Bitcoin was trading at $97,108, with gains of around 3% in the past 24 hours.
So, a large number of Bitcoin call options above $95,000 suggests that traders are hopeful for a price increase.
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Disclaimer: We at Bitcoinik.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice, and viewers should consult their financial advisors before investing.
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