According to a tweet from cryptocurrency analyst GreeksLive, there are 105,000 BTC options and 807,000 ETH options set to expire with a total value of $4.64 billion.
These are contracts that give the holder the right, but not the obligation, to buy or sell BTC or ETH at a specific price and time. 105,000 BTC options means there are 105,000 contracts that give the holder the right to buy or sell BTC at a specific price and date.
The tweet also reveals some interesting information about market sentiment and expectations. The put-call ratio is below 1 for both BTC and ETH, meaning there are more call options than put options. According to the analyst, this indicates investors are bullish on both cryptocurrencies and expect their prices to rise.
However, both BTC and ETH have a maximum risk point below current market prices. The maximum risk point is the price that would cause the most loss for option holders and the most profit for option sellers. The maximum risk point was calculated to be $27,000 for BTC and $1,850 for ETH.
This means that if BTC or ETH closes at these prices on the expiration date, most option holders will lose money and most option sellers will make money.
This article is not investment advice. Anyone considering investing should do their own research and take their own risks.
