Bitcoins Imminent Options Expiry with Max Pain at $27K

Bitcoins Imminent Options Expiry with Max Pain at $27K

A large chunk of Bitcoin options contracts are about to expire, with a max pain point of $27,000, signaling a bullish outlook for derivatives traders as the put/call ratio for this batch of Bitcoin options is 0.38.

A large chunk of Bitcoin (BTC) options contracts are about to expire, and the outlook is looking increasingly positive  tendency for derivatives traders.

Around 86,000 Bitcoin (BTC) options contracts will expire on May 26. They have a notional value of $2.26 Billion and a max pain point of $27,000.

The max pain point is the strike price with the most open Bitcoin (BTC) options contracts. This is the price at which the most losses would be incurred for the highest number of contract holders at expiration.

Bullish Bitcoin (BTC) Options Ratios

The put/call ratio (PCR) for this batch of Bitcoin (BTC) options is 0.38. This ratio is calculated by dividing the number of traded put (short) contracts by the number of call (long) contracts.

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Values below 1 are traditionally considered positive  tendency, as more speculators are purchasing more call options than put alternatives. This indicates that investors have speculated a positive  tendency tendency going forward. The number of expiring call contracts heavily outweighs the expiring put contracts.

Total open interest, the number of unsettled open contracts is 325,311, reports by Deribit. It reported that the put/call ratio is 0.44. This is likewise indicative of positive  tendency sentiment between derivatives traders.

There are likewise 695,000 Ethereum (ETH) options contracts about to expire. These have a notional value of $1.25 Billion and a max pain point of $1,800.

Furthermore, the PCR for Ethereum (ETH) options is 0.49, which is likewise heavily in favor of call (long) contracts. GreeksLive observed:

“Looking at the distribution of options coming to expiration, the proportion of call positions is huge and the prices are as of now near the max pain point.”

 “ These 30 days was a big win for the option sellers,” it noted before adding:

“Especially in the context of the present market downturn and lack of hot areas, option sellers are probably the most profitable traders.”

Bitcoin Price Outlook

Bitcoin (BTC) prices hit a ten-week low just below $26,000 in late trading on Thursday. Nonetheless, they returned to $26,423 during the Friday morning Asian trading session.

The investment has  dropped to a key longstanding Fibonacci point of support at -61.8%, which correlates to $26,200, reports by Glassnode.

Bitcoin Fibonacci retracement levels | Glassnode
Bitcoin (BTC) Fibonacci retracement levels | Glassnode

A breakdown from here could get ugly, however. Analysts have likewise predicted that Bitcoin may fall to reduce support at $24,400 should the selling pressure continue.


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