The crypto currency market will witness the termination of $ 10.31 billion Bitcoin and Ethereum option contracts today. In particular, since both beings have recently declined, this large option may affect short -term price movements. Traders are now preparing for potential fluctuations.
High Risk Crypto Money Options Ending!
Kriptokoin.comAs you follow from, there is a mixed look in the market. The options that end today indicate a significant increase compared to last week, as it will end at the end of the month. According to Deribit data, Bitcoin options contain 80,179 contracts compared to last week’s 30,645 contract. Similarly, the options of Ethereum’s maturity has risen from 173,830 contract to 603,426 agreements in the previous week.
Bitcoin options that have survived. Source: DeribitThe maximum bitter price of Bitcoin options is 98,000 dollars. Furthermore, Put/Call ratio is 0.68. This shows that the existence tends to rise in general, despite its recent withdrawal. In contrast, the maximum pain of the Ethereum counterparts is $ 3,300. Separate, Put/Call ratio 0.43. This data reflects a market look similar to Bitcoin.
Ethereum options that have survived. Source: DeribitAnalysts warn for volatility in crypto money prices!
For Bitcoin and Ethereum, the Put/Call rates below 1 point to optimism in the market with more investors betting on price increases. However, analysts recommend that the end of options to be careful due to the tendency to cause volatility in the market. Crypto Dad Putting Analyst, “the trader before the end of the maturity of the position again, sharp price movements and potential liquidations expect this can bring an important market volatility,” he warned.
The warning arrived because option maturity often caused short -term price fluctuations and creating market uncertainty. In the meantime, the latest data shows that Bitcoin decreased by 0.64 %to $ 104.299. On the other hand, Ethereum is currently trading at $ 3,226 with a modest increase of 1.04 %.
Effects of Ending Options in BTC and ETH
Bitcoin is located well above $ 98,000, which is a maximum of bitter level. Ethereum is below the price of $ 3,300. The maximum bitter point or stricle price is a very important criterion that directs market behavior. It represents the price level in which most options endlessly. Based on the maximum bitter theory of pain, both crypto money price will probably approach their own strike prices, and therefore the expected volatility. Here, the highest number of options will endlessly end as long as the maturity of these option contracts approaches.
Option buyers who lose all the value of their options will feel “pain .. On the other hand, option vendors will profit when the contracts are matched and they will keep the loan they get by selling options. The reason for this is that the maximum bitter theory of pain work with option authors often with large institutions or professional traders, in other words, smart money. Therefore, at the end of the maturity, they have resources and market effects that will direct the closing price of the stock towards the maximum pain point. Based on this assumption, these market makers will hedge their positions to protect a delta-neutric portfolio. As the maturity of their positions approaches, they affect the price towards the maximum pain point by balanced or purchasing the contract by balancing shorts option positions.
