Key facts:
The ratio of put options to call options is at 0.86.
BTC has been performing reasonably well from September until now.
This Friday, September 20, the Bitcoin (BTC) options market is facing a significant event: 20,200 BTC options are about to expire. This is no small event, considering that the notional value of these options amounts to USD 1.28 billion.
The Put Call Ratio for these options is places at 0.86. This ratio indicates the relationship between put options and call options. A ratio less than 1 suggests a slight preference for call options, which could be interpreted as a moderately optimistic feeling in the market.
The Maxpain point for these options is set at $59,000. The Maxpain point is the price at which the largest number of options would end up out of the money, thus causing the largest amount of losses to the holders of these options. This level can influence the price of bitcoin in the days leading up to expiration, as many holders may try to adjust their positions to minimize losses or maximize profits.
The source of this data is Greeks.live, a platform that analyzes and provides real-time data on the cryptocurrency options market. Greeks.live specializes in offering analysis based on the “Greeks” (Delta, Gamma, Vega, Theta) which are sensitivity measures of options prices.
This event comes against a backdrop where the cryptocurrency market has been on a recent bullish trend. According to Greeks.live, the crypto-asset rally continued this week, fueled by the US Federal Reserve’s (Fed) interest rate cut, which slightly exceeded market expectations with a final cut of 50 basis points. This move has generated considerable confidence in the market, especially with the third quarter closing and planning for the fourth.
It’s not just BTC that is facing a massive options expiry. Data from Greeks.live reflects that 125,000 options on ether (ETH), Ethereum’s cryptocurrency, are about to expire. Here, the put to call ratio is 0.67, indicating a more pronounced tilt towards call options. The Maxpain for ETH is at $2,350, with a total notional value of $320 million.
Since September, Bitcoin has shown a reasonably positive performance, Greeks.live points out. Unlike ETH, which has shown relative weakness, with its exchange rate against BTC stabilizing at a long-term support level of 0.04. This level is crucial to watch for the October market.
A week ago, the market saw 23,000 BTC options expire, suggesting continued market activity and the expectation of significant events tied to options expirations.
Bitcoin options expiry has several implications for the market. First, it influences volatility as traders adjust their positions close to the expiry date. Second, it can affect the price of the underlying asset (bitcoin), especially if there is a massive interest in adjusting positions to avoid the point of maximum pain. Third, these events are key for traders and investors looking to take advantage of market movements based on liquidity and price sensitivity.
The cryptocurrency options market is at a fever pitch this Friday, with data suggesting a mix of optimism and cautionreflected in option ratios and interest in pain points.
This article was created using artificial intelligence and edited by a human on the editorial staff.
