On December 26 at 4 PM (UTC+8), over 50% of the crypto options positions will expire, leading to a massive amount of liquidation and position transfer, which is likely to cause significant volatility in the market.

Let's take a look at the data changes for ETH, which are quite interesting.

Some traders have opened call options with a strike price of 5000 for the end of January; is this the rhythm of a bull market surge?

From the implied volatility (IV), it is evident that the recent near-term IV has dropped significantly, while the long-term IV has not decreased much. The RR value is negative, but it has improved compared to the previous weeks. This is the Christmas rally that everyone is looking forward to, bringing some warmth back to bullish sentiment.

The changes in open interest (OI) further indicate a clear bullish sentiment.

Gamma exposure is completely controlled by the expiring positions on December 26, with the focus of the battle concentrated on the 3K strike price. The maximum pain point upon expiration is 3100; it remains to be seen if this maximum pain point will manifest this time.

It is recommended that sellers close positions in advance and avoid participating in the battle on the 26th, letting buyers fight it out.

Wishing everyone to be friends with time and to open positions steadily~