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Thursday, October 28, 2021

Bitcoin Bulls Have Managed To Control Nearly $1.7 Billion Options Expiry

The 30th of July saw almost 42,850 Bitcoin options contracts expire- which was quite possibly the first time since the 21st of May that bulls profited from the call options. Incidentally, there has been quite a recent surge in the price of cryptocurrency which may have been resulted from a rumor that the giant retail company- Amazon- was accepting crypto payments.

Nevertheless, the company did deny the rumors. According to reports from options markets, the reason behind this recent market strength is not enough to prevent the bulls from sustaining at a level of $40,000. 

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Now, while the initial test does favor the neutral-to-bullish call options by 21%- as decided upon by the call-to-put ratio, there have been quite a decent number of the same bets which were placed at a sum of $45,000 and higher strikes for Bitcoin. As it goes, the options are almost worthless with way less than 14 hours left until they mature. 

Bitcoin Bulls are in complete control

The Bitcoin bulls were quite overconfident about the whole monthly expiry- with almost 87% of the neutral-to-bearish put options placed at a resistance level of $39,000 or lower. In the event that the bears are actually able to suppress the price below this certain level on the 30th of July, a total of $105 million put options will suddenly be made available.

At the same time, the neutral-to-bullish call options below a level of $39,000 amount to a sum of $320 million. This results in a net sum of $215 million which does favor the call options. 

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Most of the future expiries of Bitcoin do occur pretty simultaneously- and yet unlike options, the longs and the shorts are quite evenly matched all the time. As it stands, there is an aggregate of $650 million in BTC futures which will be expiring on Friday- but this will also depend on the CME’s $455 million due to traders closing their position before expiry. 

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