According to David Lawant of FalconX, Bitcoin is on track to experience the largest options expiry to date.
As noted by the anayst, there is a whopping $15 billion of option interest on the line. This sum represents 43% of the total current option interest. This expiry would also be three times larger than the one that took place last December.
Alex DovbnyaWhen it comes to the strike distribution for the expiry that is going to take place on Friday, calls within the $90,000-$120,000 range are the largest positoins. Puts are trailing at $80,000-$90,000 strikes.
"With annual delivery today and $18 billion in options expiring for the last delivery of the year, the theme of the week continues to be adjustment," Greeks.live said in a recent statement.
As noted by the platform, the year-end rally made the market more optimistic about the upcoming year. As of now, the market is less heated overall because of the impact of Christmas on the annual delivery.
Recently, FalconX said that downside protection has been rising over the past few weeks, with market participants trying to protect their performance metrics. The put/call ratio on the Friday options recently experienced a sharp increase. However, the market's defensive positioning is more focused on short-term price action. "The market typically favors BTC calls, but hedging demand has been rising," Lawant said.
According to Lawant, Bitcoin options are emerging as a core force in Bitcoin's price discovery.
Bitcoin is currently trading at $96,161, according to the latest CoinGecko data. Earlier this week, the cryptocurrency came close to reclaiming the $100,000 level.
Arman Shirinyan
Dan Burgin