All eyes on the crypto market are on tomorrow's expiration of major options. Reports suggest that Bitcoin and Ethereum options worth approximately $9.87 billion will expire and be settled.
The GreeksLive site, which publishes options market data, reported that 109,000 Bitcoin options are set to expire on the specified date. The put/call ratio for these contracts is 0.93, and the max loss threshold has been calculated at $72,000. The total notional value of Bitcoin options stands at $8.55 billion.
In the Ethereum network, 563,000 options contracts are about to expire. The put/call ratio for these contracts is 0.72, with a max price of $2,200. The total nominal value of Ethereum options is reported to be $1.32 billion.
In related news, the head of Fidelity has identified a 'bear flag' signal in Bitcoin!
The recent market recovery deserves attention. Bitcoin's price surge above $78,000 and the positive vibe created by the Web3 conference in Hong Kong, according to analysts, have also contributed to the recovery in the altcoin market. It is expected that this week, as part of a significant portion of the monthly options cycle, about 25% of the total open positions will be closed. Looking at the distribution of open positions, a concentration of 12% can be noted for options expiration dates at the end of May and 24% for expiration dates at the end of June.
Data on volatility in the options market also provides important signals. In the case of Bitcoin, the implied volatility (IV) across various expiration dates this month has continued its downward trend, dropping below 40% for most terms. For Ethereum, while IV levels remain higher, the downward trend is evident; current levels are hovering around 60%. Despite price increases, the correction in the 'asymmetry' data indicates that aggressive buying driven by excessive optimism or fear of missing out (FOMO) remains limited in the market.
*This is not investment advice.