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.
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.