The 105,000 BTC options contract will expire today.
The put/call ratio is relatively even at 0.83.
BTC price faces significant resistance at $30,000.
Bitcoin options contracts on the Chicago Mercantile Exchange (CME) are expiring soon. Meanwhile, BTC faces heavy resistance at current levels, will it fall back?
Bitcoin options expiration is approaching again, with a balance of 105,000 BTC contracts on April 28. Additionally, the largest pain point is $27,000, with a nominal value of $3.1 billion.
Bitcoin Options Mix
The current Put/Call ratio is 0.85, indicating neutral to bearish market sentiment.
The maximum pain price is the strike price of the most open Bitcoin options contract. It also happens to be the price at which the most contract holders suffer the most losses at expiration.
Open Interest (OI) is 105,000, which refers to the number of open Bitcoin options contracts that have not yet been settled. According to Deribit, the next batch of contracts with similar OI will expire on May 26.
Additionally, the put/call ratio is calculated by dividing the number of put (short) contracts traded by the number of call (long) contracts traded.
A value of 1 indicates that transactions between buyers and sellers are in equilibrium. However, values below 1 are generally bearish because there are more speculators short the asset than long.
Additionally, approximately 807,000 Ethereum options contracts are set to expire on April 28. The maximum pain point is $1,850, with a nominal value of $1.54 billion.
The put/call ratio for ETH options is similar to BTC contracts at 0.8.
Options allow speculators to buy or sell an asset at a specific price, with the option to sell the contract at any time. They are more flexible than futures contracts with fixed expiration dates.
Bitcoin is currently trading at $29,506 after rising 1.4% in the past 24 hours. However, it faces significant resistance at the $30,000 area, so it may struggle to overcome that. Additionally, Bitcoin options expirations are unlikely to impact Bitcoin prices over the weekend.
CME Group expands options expiration dates
Earlier this month, CME announced plans to expand its crypto options suite.
The exchange’s standard and micro Bitcoin and Ethereum contracts will offer daily expiry options starting on May 22.
Giovanni Vicioso, global head of cryptocurrency products at CME Group, said the new contracts will “provide market participants with greater precision and versatility in managing short-term Bitcoin and Ethereum price risk.”
