🚨 $11 billion in options and U.S. elections: why is the BTC market preparing for a storm?
The end of October and the beginning of November promise to be a period of increased volatility for the crypto market. We analyze two key factors that are currently putting pressure on asset rates.
📉 1. Expiration on Deribit: a factor of $11 billion and gamma hedging
The largest expiration of BTC options falls on October 30. The total volume of expiring contracts is about $11 billion, which is equivalent to about 35% of all open interest (OI) on the Deribit platform.
What is important for investors to know:
Call options "out of money": A significant amount of positions was opened on strikes $90,000 - $100,000. Most likely, these contracts will expire completely depreciated.
Dealer pressure: Market makers (dealers), hedging their gamma risks before expiration, are forced to adjust spot and futures positions. When the price moves down, this can cause a wave of cascading sales and strengthen the downward impulse.
The end of October and the beginning of November promise to be a period of increased volatility for the crypto market. We analyze two key factors that are currently putting pressure on asset rates.
📉 1. Expiration on Deribit: a factor of $11 billion and gamma hedging
The largest expiration of BTC options falls on October 30. The total volume of expiring contracts is about $11 billion, which is equivalent to about 35% of all open interest (OI) on the Deribit platform.
What is important for investors to know:
Call options "out of money": A significant amount of positions was opened on strikes $90,000 - $100,000. Most likely, these contracts will expire completely depreciated.
Dealer pressure: Market makers (dealers), hedging their gamma risks before expiration, are forced to adjust spot and futures positions. When the price moves down, this can cause a wave of cascading sales and strengthen the downward impulse.