{"id":436399,"date":"2020-08-27T02:00:58","date_gmt":"2020-08-27T02:00:58","guid":{"rendered":"https:\/\/ktsl888.com\/?p=436399"},"modified":"2024-06-11T10:25:38","modified_gmt":"2024-06-11T10:25:38","slug":"how-investors-could-see-max-pain-following-fridays-740m-bitcoin-options-expiry","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/how-investors-could-see-max-pain-following-fridays-740m-bitcoin-options-expiry\/","title":{"rendered":"How Investors Could See \u201cMax Pain\u201d Following Friday\u2019s $740m Bitcoin Options Expiry"},"content":{"rendered":"
In just a few days, the Bitcoin options market will see a massive $740 million contract expiry, which accounts for roughly 37% of the total outstanding open interest within the market.<\/p>\n
This expiration may have some impacts on the crypto market\u2019s price action<\/a>, as those holding both calls and puts may move to cover or roll-over their positions depending on where the benchmark cryptocurrency is trading at around this time.<\/p>\n The vast majority of these contracts are on Deribit \u2013 signaling that the platform still has absolute domination over the crypto options market.<\/p>\n The platform is also noting that over the next several months, option holders could experience a \u201cmax pain\u201d scenario if Bitcoin ranges between two key levels.<\/p>\n Because both of these levels have been established as strong support and resistance, there\u2019s a real possibility that this range could persist throughout the rest of the year, striking a blow to options holders.<\/p>\n This Friday, the Bitcoin<\/a> options market will see one of the largest single-day expiries in its history.<\/p>\n In total, 65,000 BTC worth of contracts will expire, having a cumulative value of roughly $740 million.<\/p>\n Deribit spoke about this expiry in a recent post<\/a>, explaining that this expiry represents 37% of the total open interest across all the major options trading platforms.<\/p>\n \u201cBig options expiry this Friday 28 Aug 2020! 65k BTC options will expire this Friday with a notional value of > USD 740 million which represents approx. 37% of total market open interest (Deribit + CME + OKEX etc.).\u201d<\/p><\/blockquote>\n <\/p>\n Roughly 76% of these 65,000 BTC options contracts are expiring on Deribit.<\/p>\n Deribit further went on to explain that a trading range between $9,000 and $12,000 could provide Bitcoin options holders with max pain in the months ahead.<\/p>\nBitcoin Options to See Massive $740m Expiry on Friday<\/strong>\u00a0<\/strong><\/h2>\n
Image Courtesy of Skew.<\/pre>\n
Here\u2019s How BTC\u2019s Price Action Could Provide \u201cMax Pain\u201d to Options Holders<\/strong><\/h2>\n