Friday, August 23, marks another significant day for crypto options expiry, particularly Bitcoin and Ethereum contracts.
Per Greeks live, around 18,400 Bitcoin options contracts, with a combined notional value of approximately $1.12 billion, are set to expire. Despite a relatively quiet spot market this week, investors are observing these events closely, hoping for potential market shifts.
Aug. 23 Options Data
18,000 BTC options are about to expire with a Put Call Ratio of 0.83, a Maxpain point of $60,000 and a notional value of $1.12 billion.
140,000 ETH options are about to expire with a Put Call Ratio of 0.93, Maxpain point of $26,25 and a notional value of $370… pic.twitter.com/qIS2CWer13— Greeks.live (@GreeksLive) August 23, 2024
This week’s options expiry event is smaller compared to last week, which limits its likely effect on spot prices. Notable, the Bitcoin options have a put/call ratio of 0.83, meaning that long and short positions are relatively balanced, with slightly more long positions.
The max pain point—where most losses occur—is around $60,000, close to current spot prices. Open interest remains notably high, especially at strike prices above $70,000, and even at $100,000.
Ethereum Contracts Set for Expiry
As these Bitcoin’s options contracts near expiration, some Ethereum options are also approaching their deadline. About 140,000 ETH options, with a total value of $370 million, are due to expire, with a put/call ratio of 0.93 and a max pain point of $26,25.
Ethereum’s positions are leaning towards the bearish side, but overall market volatility has remained low. Positions in weekly options are decreasing, accounting for under 7% of the total market positions for the week.
Market Stability Amid Macro Events
Market volatility is trending lower, with crypto derivatives provider Greeks Live reporting a drop in historical volatility (RV) for cryptocurrencies. The options market’s expectations for volatility are similarly decreasing, partly due to limited impact from this week’s macroeconomic events.
One of the key upcoming events is the Jackson Hole Central Bank Annual Meeting, which could provide further insight into the Federal Reserve’s future actions. Despite the market remaining flat this week, options data suggests consistent expectations ahead of these macro developments.
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