Today, a large amount of Bitcoin and Ethereum options are expiring, with the maximum pain points being 108,000 USD and 2,600 USD, respectively.
On July 11, 37,000 Bitcoin options worth 4.3 billion USD and 240,000 Ethereum options worth approximately 710 million USD will expire, putting pressure on the cryptocurrency market throughout the day.
MAIN CONTENT
37,000 Bitcoin options expire, with a maximum pain price of 108,000 USD.
240,000 Ethereum options expire, with a maximum pain price of 2,600 USD.
The total value of expired Bitcoin and Ethereum options amounts to over 5 billion USD.
How do the expiry of Bitcoin options on July 11 affect the market?
According to expert Adam from Greeks.Live, up to 37,000 Bitcoin options with a nominal value of 4.3 billion USD will expire, creating potential volatility around the price level of 108,000 USD – the “maximum pain” point calculated based on a put/call ratio of 1.05.
The expiry results of these options can create price pressure or adjust short-term trends as investors and organizations restructure their positions. Large expiry events of options often lead to spikes in volatility in the Bitcoin market.
Expiry events of options with high value always need to be closely monitored as they affect liquidity and Bitcoin price volatility can be very strong.
Adam, Chief Analyst at Greeks.Live, July 11, 2024
What is the scale and impact of Ethereum options expiry?
On the same day, 240,000 Ethereum options with a total nominal value of up to 710 million USD will also expire, with the “maximum pain” point at a price of 2,600 USD and a put/call ratio of 1.11.
This event could have a significant impact on ETH prices due to the large amount of options and a put/call ratio above 1, indicating a slight increase in risk-hedging trends. Professional investors often closely monitor expiration points to optimize their trading strategies and hedge against volatility.
Ethereum options expiry brings opportunities but also challenges as the market reacts sensitively alongside the demand for portfolio protection.
Adam, Chief Analyst at Greeks.Live, July 11, 2024
What is the “maximum pain” point and why is it important in options?
“Maximum pain” is the price at which market makers incur the least loss when options expire, calculated based on the total value of unexercised call and put options. This is the expected price that may occur on the expiration day.
For Bitcoin, it is 108,000 USD, and for Ethereum, it is 2,600 USD. These levels reflect the equilibrium point of sentiment and market pressure between buyers and sellers of options, helping investors predict significant price fluctuations on the expiration day.
Summary and market predictions for the cryptocurrency in the context of options expiry
The expiry event of options with large volumes often creates significant volatility in the cryptocurrency market. Organizations and individual investors can use this data to adjust their investment strategies in line with predicted trends and risks.
According to the latest report and in-depth analysis, the Bitcoin and Ethereum markets may witness severe price fluctuations during the expiry session on July 11, while also laying the groundwork for subsequent long-term trends.
Frequently Asked Questions
How do options expiry affect the prices of Bitcoin and Ethereum?
Expiring options with high value can create strong volatility as investors adjust their positions, affecting liquidity and market sentiment.
What does “Maximum pain” mean in options?
This is the price at which market makers suffer the least loss when options expire, usually reflecting market equilibrium on the expiration date.
How does the put/call ratio affect the options market?
This ratio indicates the trend of buying put options or call options, helping to forecast market sentiment and the possible direction of prices.
How can investors leverage information about expiring options?
Investors can rely on this information to adjust their trading strategies, manage risks, and find opportunities from price fluctuations.
Is the phenomenon of option expiry common?
Monthly expiry of options is a common event, often creating significant volatility in the cryptocurrency market.
Source: https://tintucbitcoin.com/bitcoin-ethereum-options-dao-han-5-ty/
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