Options Expiry Alert: Bitcoin and Ether Contracts Worth $2.7 Billion Set to Expire Soon

The financial trading platform, in a recent social media post, claimed that 21,000 Bitcoin options are nearing expiry, with a put/call ratio of 0.88, indicating a slight preference for call options over put options.

Despite the significance of the 21,000 contracts expiring, a more substantial event looms on May 31, when $4.3 billion worth of options will expire, according to data from Deribit.

The options expiry event also involves 350,000 Ether (ETH) contracts, worth $1.3 billion. With a put/call ratio of 0.58 and a max pain point of $3,200, the sentiment leans slightly bullish, with more call options than put options expiring.

According to Greeks.live, Ethereum recently led a crypto rally, inspired by ETF progress, with a one-day 20% increase. Short-term options implied volatility (IV) hit 150%, much higher than Bitcoin’s IV for the same period.

Despite strong bullish sentiment for Ethereum, maintaining high IV levels for each term is challenging. This suggests that calendar spreads might be more effective. Meanwhile, Bitcoin shows a more balanced position between long and short positions, with stronger forces selling calls.

Deribit data shows that long positions dominate open interest (OI), with $830 million at the $70,000 strike price. Higher strike prices also show substantial OI, particularly $843 million at $100,000, indicating bullish trader sentiment. The $60,000 strike price holds $388 million in OI for put contracts, suggesting some bearish sentiment remains.

The significant OI reflects unresolved contracts, showing that bulls are optimistic about higher Bitcoin prices. Open interest represents the total value of outstanding contracts waiting for settlement.

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