According to a tweet by cryptocurrency analyst GreeksLive, 105,000 BTC options and 807,000 ETH options are about to expire with a total valuation of $4.64 billion.
These are contracts that give the right to buy or sell BTC or ETH at a certain price and until a certain time. 105,000 BTC options means there are 105,000 contracts giving the right to buy or sell BTC at a specific price and date.
The tweet also reveals some interesting information regarding market sentiment and expectations. The put call rate for both BTC and ETH is below 1, meaning there are more call options than put options. This indicates that investors are in a bullish trend for both cryptocurrencies and expect their prices to increase.
However, the maximum risk point for both BTC and ETH is below current market prices. The maximum risk point is the price that causes the most loss for option holders and the most profit for option sellers. The maximum risk point for BTC was calculated at $27,000, and for ETH at $1,850.
This means that if BTC or ETH closes at these prices on expiry, most options holders will lose money and most options sellers will make money.
*Not investment advice.