According to data from Skew Analytics, more than 55,000 bitcoin options contracts worth $2.2 billion will expire on Friday. Statistics further show, as far as options are concerned, Deribit captures the lionâ€™s share of contracts with 48,469 bitcoin options contracts ($1.95 billion notional) set to expire.
55K in Bitcoin Option Set to Expire, Deribit Carries $1.95 Billion Notional
- Another large options expiry is set to happen on May 28, 2021, following last weekâ€™s bitcoin (BTC) market sell-off. The analytics providerâ€™s Twitter account from skew.com revealed on May 25, 2021, that over â€œ55k bitcoin options expiring this Friday with $40k strike open in $130mln notional.â€
- Skew data shows approximately 55,900 contracts ($2.2 billion) will expire around 4 a.m. (ET) on Friday.
- The options expiry follows the recent market carnage stemming from China, significant leverage, and environment FUD during the last two weeks. However, Skew Analytics said that bitcoin (BTC) markets absorbed â€œthis weekâ€™s sell-off much better than during the COVID-19 panic on the 12th of March 2020 with BTC going
- Data from the derivatives exchange Deribit shows the lionâ€™s share of bitcoin options contracts have been placed on the trading platform. In regard to BTC options, in terms of open interest, exchanges like Ledgerx, Okex, and CME follow Deribitâ€™s lead respectively.
- Insights from Deribit indicate the exchange has a â€œlarge expiry coming up tomorrow as 48,469 BTC option contracts (USD 1.95b notional) expire and 307,558 ETH options (USD 877m notional).â€
- Deribit Insights notes that â€œâ€˜max painâ€™ for BTC is USD 50k and ETH USD 3k.â€ Deribit has also launched a new August expiry and July futures will be launched on May 28, 2021.
- The derivatives exchange further notes that â€œContango has returned with annualised yields up to 8.5% for BTC and 10% for ETH,â€ and â€œperpetual funding positive again as well.â€ The Deribit Implied Volatility Index (DVOL) â€œ decreased to (still elevated) level of 110-115.â€
- Last Friday, Deribitâ€™s Insightsâ€™ Twitter account tweeted about the 48 hours in ethereum (ETH) options. â€œ19/5 Short gamma+vega positions forced closed in explosive spot volatility. Fast market pricing surged Implied vol >350%; Realized way higher,â€ the exchange noted at the time. â€œBut on 20/5 while BTC Options were calm, ETH Option flows saw large Straddle buyers pre-empting a big move.â€
- Five days later on May 26, Skew Analytics wrote that as far as ETH volatility is concerned â€œcurrent market volatility is back on par with [the] 2017 cycle.â€
What do you think about the 55k worth of bitcoin options set to expire on Friday? Let us know what you think about this subject in the comments section below.
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