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Will Big $3.2B Bitcoin Options Expiry Keep Market Momentum Moving?

2 mins
Updated by Kyle Baird
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In Brief

  • On September 29, around 118,000 Bitcoin options contracts will expire with a notional value of $3.2 billion.
  • The max pain point for today’s expiring Bitcoin options contracts is $26,500, lower than the current spot BTC price.
  • In addition to Bitcoin, 1.1 million Ethereum contracts are set to expire today with a notional value of $1.8 billion.
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Friday is Bitcoin options expiry day, and a massive tranche of contracts is set to go today. Crypto markets are enjoying a rare day in the green, but will the big expiry have an impact?

On September 29, around 118,000 Bitcoin options contracts will expire with a notional value of a whopping $3.2 billion. The end-of-the-month expiry is usually a big one, and September will dwarf previous weeks’ expiry events

Big Bitcoin Options Expiry 

The max pain point for today’s big batch of expiring Bitcoin options contracts is $26,500. This is now lower than the spot BTC price, which topped $27,000 a few hours ago. 

The price level with the most open contracts is max pain, and it’s also the level where most losses occur when the contracts expire.

The put/call ratio is 0.58, meaning almost two-thirds of today’s expiring contracts are calls (longs). 

Greeks Live noted that this is a quarterly delivery, adding this year’s Q3 is as flat as in previous years. Moreover, the third quarter is generally the least active period, and “Put’s position share is significantly lower compared to weekly deliveries.” 

Liquidity has continued to deteriorate of late, with large position shifting being the main trading driver this week. With delivery just around the corner, IV continues its downward trend.”

IV is implied volatility which measures expected future volatility derived from the expiring derivatives contracts. The downtrend indicates that the market consolidation and low volumes will likely continue for a while.

Bitcoin options OI. Source: X/@GreeksLive
Bitcoin options OI. Source: X/@GreeksLive

Big Day For ETH Contracts 

In addition to Bitcoin options, today also marks the expiration of 1.1 million Ethereum contracts.

These have a notional value of $1.8 billion and a max pain point of $1,650 which is exactly where ETH is trading at the time of writing. The put/call ratio for the Ethereum contracts is 0.46.

Ethereum options OI. Source: X/@GreeksLive
Ethereum options OI. Source: X/@GreeksLive

Crypto markets are experiencing a rare day in the green, with the total cap climbing 2% on the day to reach $1.11 trillion.

BTC topped $27,000 in late trading on Thursday but has already cooled and dropped back to $26,958. 

Meanwhile, Ethereum gained 2.8% on the day to reach $1,651. ETH momentum may have been driven by the premise of the first futures ETFs being launched in the US next week. 

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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
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