The Largest Concentration of Ether Call Options at $4,000
According to data from Deribit, the largest cluster of ether call options for June’s expiry date is focused on a strike price of $4,000. This concentration of options suggests that market participants anticipate the price of ether rising above $4,000 by the expiration dates. Deribit Chief Commercial Officer Luuk Strijers shared charts indicating this notable grouping of ether call options at the $4,000 strike price.
Traders Anticipating Spot Ether ETF Approval
Analysts note that the concentration of ether call options at $4,000 comes after the potential approval of a spot Ethereum ETF by the end of May. The final decision deadline for spot ether ETF applications submitted to the U.S. Securities and Exchange Commission is May 23. Traders may be adjusting their ether options contracts in anticipation of this approval. However, it is too early to conclude whether derivatives traders are expecting a price appreciation following an ETF approval.
Understanding Options
Options are derivative contracts that give traders the right but not the obligation to buy or sell an underlying asset at a predetermined price on or before a specific date. A call option grants the right to buy, while a put option allows for selling. Traders who buy put options are generally bearish on the market, while call buyers are bullish.
Hot Take: Ether Price Increase
The price of ether has increased by over 2% in the past 24 hours, reaching $2,470 according to The Block’s Price Page.
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