What You Need to Know:
- Over $14.6 billion worth of Bitcoin and Ether options will expire on Friday, marking a major moment in the derivatives market.
- The current expiry indicates a heightened demand for Bitcoin put options, revealing a tendency towards downside protection, while the demand for Ether options remains balanced.
- Since 2020, the options market has expanded significantly, with key ‘max pain’ levels for Bitcoin and Ether set at $116,000 and $3,800 respectively.
Bitcoin and Ether options worth over $14.6 billion are scheduled to expire on Friday, signaling one of the most significant events in derivatives trading for 2025.
The expiry is largely tilted towards put options for Bitcoin, underscoring ongoing interest in downside protection, while Ether options show a more balanced interest. As of this writing, there are 56,452 BTC call contracts and 48,961 put contracts set for settlement, amounting to a notional open interest of $11.62 billion according to Deribit Metrics. Deribit stands out as the leading crypto options platform, contributing to 80% of global trading activity. On Deribit, each options contract corresponds to one Bitcoin or Ether token.
Focusing on open interest reveals a concentration of activity in put options with strike prices ranging from $108,000 to $112,000, whereas the most sought-after call options are found at $120,000 and above.
In summary, there is a strong inquiry for near-the-money puts around Bitcoin’s market price of roughly $110,000, whereas calls at elevated strike prices illustrate aspirations for further price appreciation. Conversely, Ether showcases 393,534 call options against 291,128 put options, representing a total of $3.03 billion in notional open interest, with notable concentrations at strike prices of $3,800 and $4,000 on the call side, and $4,000, $3,700, and $2,200 for puts.
“The upcoming expiry highlights consistent demand for Bitcoin while positioning Ether in a more neutral territory. Combined with signals from Powell in Jackson Hole, this expiry event could influence market dynamics for September,” noted Deribit on X.
