A large chunk of Bitcoinย (BTC) options contracts are about to expire, and the outlook is looking increasingly positiveย tendency for derivatives traders.
Around 86,000 Bitcoinย (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 Bitcoinย (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 Bitcoinย (BTC) Options Ratios
The put/call ratio (PCR) for this batch of Bitcoinย (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.
Values below 1 are traditionally considered positiveย tendency, as more speculators are purchasing more call options than put alternatives. This indicates that investors have speculated a positiveย 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, reportsย by Deribit. It reported that the put/call ratio is 0.44. This is likewise indicative of positiveย tendency sentiment between derivatives traders.
There are likewise 695,000 Ethereumย (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 Ethereumย (ETH) options is 0.49, which is likewise heavily in favor of call (long) contracts. GreeksLive observed:
โLooking at the distribution of options coming to expiration, the proportion of call positions is huge and the prices are asย ofย now near the max pain point.โ
ย โ Theseย 30ย days was a big win for the option sellers,โ it noted before adding:
โEspecially in the context of theย present market downturn and lack of hot areas, option sellers are probably the most profitable traders.โ
Bitcoin Price Outlook
Bitcoinย (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 hasย dropped to a key longstanding Fibonacci pointย ofย support at -61.8%, which correlates to $26,200, reportsย by Glassnode.
A breakdown from here could get ugly, however. Analysts have likewise predicted that Bitcoin may fall toย reduce support at $24,400 should the selling pressure continue.
