Today September 27, a lot of Bitcoin and Ethereum options are set to expire. For Bitcoin, options worth $5.8 billion will expire, while Ethereum has $1.9 billion set to expire on the same day. This event is expected to cause changes in the market, leading to possible price shifts. As the time approaches traders are adjusting their positions to either protect their investments or make the most of the situation. Two key things traders are keeping an eye on are the put/call ratio and the max pain price, which give hints about where prices might end up.
Related: Microstrategy Purchases $458M Bitcoin, Holding 252,220 BTC.
Quantity of Bitcoin and Ethereum options Expiring Today
Billion dollars worth of Bitcoin and Ethereum options would expire today. For Bitcoin, $5.8 billion worth of options are about to expire. The put/call ratio for Bitcoin is 0.64, which shows there are more call options than put options. This means traders are expecting Bitcoin’s price to rise because call options are used when traders expect prices to go up, and put options when they think prices will drop. The max pain price for Bitcoin is set at $59,000. This is the price where most options contracts will lose value, causing the biggest loss to traders. If Bitcoin’s price stays close to this level, many options could expire worthless, leading to more trading and sudden price changes.
Ethereum is also facing a large options expiration with $1.9 billion worth of options expiring on the same day. The put/call ratio for Ethereum is 0.47, which shows a more positive outlook compared to Bitcoin. A ratio below 0.5 means there are far more call options than put options, suggesting traders think Ethereum’s price will rise. The max pain price for Ethereum is $2,500. If Ethereum’s price is near this level at expiration, many traders might see their contracts expire with no value. Traders are watching this closely as it gives them clues about where prices could land.
The max pain price is important for options traders because it’s the price where the most contracts will lose value at expiration. This leads to the most loss for traders holding those contracts. Some traders believe that prices could move toward the max pain level as the expiration date nears, though this doesn’t always happen. Still, the max pain price helps traders figure out where prices might go as options expire.
As September 27 gets closer, traders are getting ready for possible price swings. When options expire, trading activity usually increases as traders adjust their positions, either trying to lock in profits or reduce losses. With $5.8 billion in Bitcoin options and $1.9 billion in Ethereum options set to expire, this affects a large portion of the market. This could lead to quick price changes as traders react. While the mood among traders is mostly positive, based on the put/call ratios, if prices stay near the max pain levels, many traders could lose money. The market is expected to be active with some uncertainty as the expiration draws near.
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