Today, $10 billion in crypto options are set to expire. To begin with, approximately 80,000 Bitcoin options contracts, amounting to a notional value of $8.36 billion, and around 600,000 Ethereum options contracts, worth $1.95 billion, are set to expire.
These two giants alone bring the total crypto options expiry value to an estimated $10.3 billion. Altcoin expiration will further add on to the total amount
This week, Bitcoin options contracts have a put/call ratio of 0.68, which means more longs than shorts. According to Deribit, the highest OI strike price is at $120,000, which is $2.4 billion. There is also around $1.65 billion in OI at the $110,000 strike price.
Around 600,000 Ethereum contracts are also expiring in addition to today’s tranche of Bitcoin options. These have a notional value of $1.95 billion and a put/call ratio of 0.43.
What Are Bitcoin Options?
Bitcoin options are derivative contracts that grant traders the right, but not the obligation, to buy (call options) or sell (put options) Bitcoin at a predetermined price before the contract expires. These options are used by traders to hedge risk or speculate on future price movements.
When these contracts expire, they may lead to market fluctuations. Because traders usually choose to adjust their positions rather than letting them expire.
Also Read: $7.8 Billion in Bitcoin Options Set to Expire by Month End
