As a seasoned crypto investor with several years of experience in the market, I closely monitor the options expiry for Bitcoin (BTC) and other cryptocurrencies. This Friday is particularly interesting due to the upcoming expiration of approximately 18,000 BTC options, worth around $1.15 billion in notional value. The put/call ratio of 0.64 indicates a larger number of long contracts (calls) will be expiring compared to short contracts (puts). This bullish sentiment is further reinforced by the surge in open interest for Bitcoin call options, which is twice that of put options.
As a crypto investor, I’m excited it’s Friday because today is when Bitcoin options expiry occurs, and I’ll be keeping a close eye on any potential price movements in BTC. Around 18,000 BTC options are about to expire, with a Put Call Ratio of 0.64 and a Maxpain point at $62,000. The notional value of this week’s expiring Bitcoin contracts is around $1.15 billion, which is slightly less than the previous week’s expiry.
The ratio of 0.64 for put-to-call contracts implies that a greater number of long positions, or call options, are set to expire relative to short positions, or put options. Additionally, Bitcoin open interest has reached an impressive $700 million at the $70,000 and $100,000 strike prices, indicating the prominence of long positions. On a contrasting note, the open interest for put-call contracts amounts to $360 million. This can be rephrased as:
It’s evident that the open interest for Bitcoin call options stands at double the open interest for put options. This situation signifies a predominantly optimistic outlook among traders. Call options grant the holder the right to acquire the underlying asset at a set price prior to an agreed expiration date.
Further observation by trading companies like QCP Capital and Paradigm reveals a revived interest in acquiring upwards call options. This trend encompasses traders settling existing contracts to switch over to pricier call alternatives with expiration dates in July and September.
A Look At Bitcoin Options Implied Volatility (IV)
According to Greeks.Live’s data, the cryptocurrency market took a hit in the past week due to decreased trading volume. Despite fewer withdrawals from the US Bitcoin ETF, underlying market conditions and large-scale trades pointed towards ongoing price instability.
As an analyst, I’ve observed a downward trend that has led to decreasing confidence among investors, as evidenced by the declining implied volatility (IV) across major terms. Currently, IV levels are slightly below historical averages, indicating some support. However, I believe there is limited room for further decline at this point in time.
Based on recent market trends, May hasn’t been kind to investors. It could be worth considering the purchase of monthly put options at this point.
On May 10th, approximately $1.2 billion worth of BTC options with an underlying value of 18,000 units are set to expire. The put-call ratio for these options is 0.64, and the max pain point is at a price of $62,000 per BTC. Simultaneously, around $800 million worth of ETH options with an underlying value of 280,000 units will also expire. The put-call ratio for these options stands at 0.74, and the max pain point is at a price of $3,050 per ETH.
— Greeks.live (@GreeksLive) May 10, 2024
Over the past 24 hours, Bitcoin’s price has rebounded from under $61,000 and is now hovering around $63,000. Should Bitcoin manage a robust surge above $64,000, we may witness its price climbing towards $70,000 in the near future.
Read More
Sorry. No data so far.
2024-05-10 14:00