The cryptocurrency market is preparing for a significant event as a considerable number of Bitcoin (BTC) and Ethereum (ETH) options are set to expire.
According to data shared by Greeks.live on Twitter, 25,000 BTC options will expire with a put-call ratio of 0.7, a max pain point of $29,000, and a notional value of $0.72 billion.
Additionally, 217,000 ETH options will expire, featuring a put-call ratio of 0.83, a max pain point of $1,950, and a notional value of $0.42 billion.
Crypto options, similar to traditional options, make it possible for investors to hedge their positions, speculate on price movements, or even generate income by selling options.
Option expiries refer to the end of an option contract's life, at which point the option either gets exercised or becomes worthless.
Alex DovbnyaThe put-call ratio, meanwhile, is an indicator that measures the balance of put options (contracts that grant the right to sell) to call options (contracts that grant the right to buy) in the market. A high put-call ratio usually signals bearish sentiment, while a lower ratio implies bullish sentiment.
The max pain point, also known as the max pain level, is the point where option owners (buyers) feel the most financial pain, i.e., the price at which the greatest number of options will expire worthless.
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Yuri Molchan
Dan Burgin
Vladislav Sopov