A large number of Bitcoin options contracts are expiring today, but will they add to the market momentum already boosted by Ripple’s court victory? With ETH surpassing $2,000 for the first time in months, numerous Ethereum options contacts are also on the brink of expiration.
On July 14, 25,000 Bitcoin options contracts with a face value of $770,000 will expire. While not a major expiration event, it could add to the market momentum already fueled by Ripple and XRP.
Bitcoin Options Expiration
The expiring Bitcoin options have a put/call ratio of 0.56. This means that there are about twice as many call contracts (long contracts) as there are put contracts (short contracts).
The ratio results from dividing the number of short seller contacts by the number of long seller contracts. In addition, readings below one mean that there are more call contracts, indicating bullish sentiment for the underlying asset.
The maximum pain point for options contracts expiring today is $30,500. The maximum pain price refers to the level with the most open contracts and the most losses at expiry.
Bitoin OI. Source: Twitter/@GreeksLive
Derivatives feed the Greeks Live watched as BTC hit a new yearly high. However, “judging by market sentiment, most participants do not appear to be benefiting from the rally,” it said.
“Options positions and volumes were significantly underperforming this week and the options market was relatively fragmented.”
Additionally, 176,000 Ethereum options contracts are also expiring today. They have a face value of $355 million and a put/call ratio of 0.66. The maximum pain point for ETH contracts is $1,900.
Change in market dynamics
Greeks Live added that many of the whales are “waiting for a change in the market after opening a large position earlier this month.” Trading this week is more about adjusting positions, it said.
“The current BTC call position is more than the double put and ETH is more than the triple. So once the uptrend begins, the existing options pattern will be disrupted.”
However, that change may not have come until today’s $80 billion spot crypto market rally.
This could prompt derivatives traders to buy more call contracts if they anticipate further momentum and price gains.
Total capitalization at the time of writing is up 6.8% for the day to $1.30 trillion.
However, the broader crypto market is still within its four-month sideways channel and has yet to see a longer-term breakout.
Disclaimer
In accordance with Trust Project policies, BeInCrypto is committed to unbiased and transparent reporting. The goal of this news article is to provide accurate and timely information. However, readers are encouraged to independently verify the facts and consult a professional before making any decisions based on this content.
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