Today, approximately $8.12 billion worth of Bitcoin (BTC) and Ethereum (ETH) options are due to expire.
Market watchers are particularly attentive to this event due to its potential to influence short-term trends through the volume of contracts and their notional value. Examining the put-to-call ratios and maximum pain points can provide insights into traders’ expectations and possible market directions.
Insights on Today’s Expiring Bitcoin and Ethereum Options
The notional value of today’s expiring BTC options is $4.65 billion. According to Deribit’s data, these 261,390 expiring Bitcoin options have a put-to-call ratio 0.6. This ratio suggests a prevalence of purchase options (calls) over sales options (puts).
The data also reveals that the maximum pain point for these expiring options is $65,000. The maximum pain point is the price at which the asset will cause the greatest number of holders’ financial losses.
Read more: An Introduction to Crypto Options Trading
In addition to Bitcoin options, 2,750,922 Ethereum options contracts are set to expire today. These expiring options have a notional value of $3.47 billion, a put-to-call ratio of 0.85, and a maximum pain point of $3,300.
The number of today’s expiring Ethereum options was significantly higher than last week. BeInCrypto reported that last week’s expired ETH options were 352,861 contracts, with a notional value of $1.33 billion.
Read more: 9 Best Crypto Options Trading Platforms
While option expirations can cause sharp price movements, the impact is usually temporary. The market generally stabilizes the next day, offsetting initial fluctuations. Traders should carefully analyze technical indicators and market sentiment before investing in this volatile environment.
