Due to the impending expiration of a sizable number of Bitcoin (BTC) and Ethereum (ETH) options, the cryptocurrency market is getting ready for a huge event.
25,000 Bitcoin options will expire with a put-call ratio of 0.7, a maximum pain point of $29,000, and a notional value of $0.72 billion, according to information posted by Greeks.live on Twitter.
With a put-call ratio of 0.83, a maximum pain point of $1,950, and a notional value of $0.42 billion, 217,000 ETH options will also expire.
Similar to regular options, cryptocurrency options allow investors to hedge their positions, make predictions about price changes, or even make money by selling options.
Option expiries describe the moment in an option contract’s life when the option is either exercised or loses all of its value.
An option is a financial instrument that gives traders the chance to purchase or sell an underlying asset, such Bitcoin or Ethereum, at a specified price before a particular expiration date when referring to the cryptocurrency market.
The put-call ratio, on the other hand, is a metric that assesses the market’s distribution of put options, which provide the right to sell, and call options, which grant the right to purchase. A high put-call ratio often indicates a pessimistic attitude, whereas a low ratio suggests a bullish one.
The maximum pain level, sometimes referred to as the maximum pain point, is the price at which the majority of options will expire worthless and where option owners (buyers) will experience the highest degree of financial agony.
