“The Impending Expiry Shows A Strong Demand for Bitcoin Put Options, Indicating A Preference for Downside Protection,”, – WRITE: www.coindesk.com
The Expiry Is Heavily Skewed Toward Btc Put Options, UndersCoring A Continued Demand for Downside Protection, Whereas Is It’s More Balanced for Ether.
As of the Time of Writing, 56.452 BTC Call Option Contracts and 48.961 Put Option Contracts Were Due Due for Settlement, Totalling A Nocial Open Interest of SOURIB Metrics. Deribit is the World’s Largest Crypto Options Exchange, Accounting for 80% of the Global Activity. On Deribit, One Option Contract Represents One BTC or ETH.
BTC’s Open Interest Distribution. (Deribit Metrics)
A Closer Look at Open Interest Reveals Concentrated Activity in Put Options with Strikes Between $ 108,000 and $ 112,000. Conversely, The MOST POPULAR CALL OPTIONS ARE CLUSTERED AT $ 120,000 and Above.
In Other Words, Near-The-Money Puts AROUND BTC’s Current Market Price of Approximately $ 110,000 are Highly Sounga, while Calls with Higher Strikes.
In Ether’s Case, A Total of 393.534 Calls Are Due for Settlement, Outstripping The Put Tally of 291,128 by a Significant Margin, Both Totling $ 3.03 Billion Interest.
Significant Oi is Concentrated in Calls at Strikes $ 3.800, $ 4,000 and $ 5,000, and Put Options at Strikes $ 4,000, $ 3.700 and $ 2.200.
“BTC Expiry Points to Persent Demand for Downside Protection, While Eth Looks More Neutral. Combined with Powell’s Jackson Hole Signal, This Expiry Mayor.
Eth’s Open Interest Distribution. (Deribit Metrics)
Options are derivative Contracts that give the purchaser the right to buy or sell the underlying asset at a predetermined price on or before a special Future Date. A Call Option Gives The Right to Buy and Represents A Bullish Bet On the Market. Meanwhile, A Put Option Provides Insurance Against Price Slides.
The Options Market Has Grown Leaps and Bounds Since 2020, with Monthly and Quarterly Settlements Gaining Prominence As Major Market-Moving Events.
By 2021, some Observers Proped That Prices Tend to Gravitate Town ‘Max Pain’ Levels – The Strike Prices Where Options Holders Suffer The Greatest Losses – in the day. However, The Validity of this Theory Remains A Matter of Debate Among Traders and Analysts.
As of Writing, The Max Pain Levels for Bitcoin and Ether Are 116,000 and $ 3,800, Respectively, Serving As Focal Points for Believers of the Max Pain Theory.
Read More: Ether, Dogecoin, Bitcoin Plunge Sees $ 900m in Bullish Bets Liquidated
Omkar Holds A Master’s Degree in Finance and A Charterred Market Technician (CMT) Designation.
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Ether, Solana, and XRP Mainten Relative Stronger Positions.
- Bitcoin’s Price Has Fallen Belen the 100-Day Simple Moving Awad for the First Time Since April, Boltering the Bearish Outlook.
- The Cryptocurrency’s Technical Outlook Has Worsened, With Prices Also Droping Below The Ichimoku Cloud.
- Ether, Solana, and XRP Mainten Relative Stronger Positions.
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