A large number of Bitcoin and Ethereum options contracts will expire today, according to data from GreeksLive.
Options are contracts that give the buyer the right, but not the obligation, to buy or sell the underlying asset at a specified price on or before a specified date.
Options can be used to hedge against price fluctuations, to speculate about future movements, or to generate income by holding an asset.
Large Amount of Bitcoin and Ethereum Contract Expires
According to GreeksLive, 25,000 Bitcoin options contracts with a total value of $720 million are about to expire today. The put/call ratio of contracts is 0.7; this means that there are more purchases (uptrends) in the market than sells (downtrends). The maximum risk point of the contracts is $29,000, which is the price that will cause the most loss to option holders at expiration.
BTC price is trading at $ 28,084 at the time of this writing.
Similarly, 217,000 Ethereum options contracts are about to expire today, with a total value of $420 million. The sales/buying ratio of the contracts is 0.83; which means that there are slightly more purchases (bullish trades) in the market than sells (bearish trades). The maximum risk point of the contracts is $1,950, which is the price that will cause the most loss to option holders at the expiration date.
Ethereum price is trading at $ 1,920 at the time of this writing.
The put/call ratio is calculated by dividing the number of put options by the number of call options. A ratio below 1 means there are more buys than sells, which indicates an uptrend.
A ratio above 1 means there are more put options than call options, which indicates a bearish trend. A ratio close to 1 means the market is balanced or neutral.
*Not investment advice.