As the new year approaches, the expiration dates of option contracts have reached significant levels... On Friday, billions of dollars in positions will expire on Deribit, the largest exchange for cryptocurrency options and derivatives.
On Friday, December 26, which falls one day after the Christmas holidays in the Western world and also marks the end of the week, option contracts on Bitcoin and Ether worth a total of 27 billion dollars will expire. This includes 23.6 billion dollars in Bitcoin options and 3.8 billion dollars in Ether positions.
According to Deribit data, this figure represents over 50% of all open positions on the exchange.
An optimistic climate is observed.
According to Sidrah Fariq, Global Head of Retail Sales and Business Development at the exchange, the "put-call option ratio" is 0.38. This means that the number of call options is almost three times that of put options… This indicates an optimistic climate in the market.
The "max pain level," considered the price at which option buyers lose the most and sellers realize the highest profit, is currently around $96,000. The "max pain level" is one of the most closely monitored indicators, especially at the expiration of options…
Therefore, a "max pain" of $96,000 means that the area where the positions of option buyers lose the most is also around $96,000. For Ether, this level is $3,100...
Between $100,000 and $116,000...
The "put-call ratio" mentioned above is one of the areas where an optimistic climate is observed... For every 100 call options, there are 38 put options. In call options, most open positions have strike prices between $100,000 and $116,000.
In the put options, this strike price is $85,000...
"The puts from $70,000 to $85,000 are reported for January"
According to Sidrah Fariq, in put options, or bearish futures contracts, positions with strike prices between $70,000 and $85,000 are reported for January.
"The investors' decision will show the decline"
Fariq explains the importance of these movements as follows:
"Will the December put options expire or be extended into January? The decision that the general base of investors will make in this case will show us whether the decline will be significant or temporary."
Fariq also noted that, despite the high trading volume, volatility remains under control and bullish expectations prevail over bearish transactions.
