$2.7B worth of expiring Bitcoin and Ether options

Around $2.7 billion in Bitcoin and Ether options are scheduled to expire on May 24, offering valuable insights into the sentiment of the crypto market.
According to a post on X by Greeks.live, there are approximately 21,000 Bitcoin (BTC) options about to expire, with a put/call ratio of 0.88. This indicates a fairly even balance between buyers and sellers, with a slight bias towards call options.
The maximum pain point, which is the price at which most option buyers would suffer losses, is $67,000, representing a total value of $1.4 billion.
While the upcoming expiration of 21,000 contracts is significant, it pales in comparison to the much larger event on May 31, when a staggering $4.3 billion worth of options are set to expire, according to Deribit.
Data from Deribit reveals that long positions dominate in terms of open interest (OI), with a significant $830 million tied to the $70,000 strike price.
Furthermore, higher strike prices also have substantial OI, particularly $843 million at the $100,000 mark, indicating a bullish sentiment among traders. The $60,000 strike price stands out for put contracts, with $388 million in open interest.
This substantial OI suggests that many contracts remain unsettled, indicating that bulls are confident in much higher Bitcoin prices, as OI represents the unresolved value of contracts waiting to be settled.
The options expiration event is not limited to Bitcoin, as there are also a significant 350,000 Ether (ETH) contracts expiring, representing a notional value of $1.3 billion. The put/call ratio of 0.58 and a maximum pain point of $3,200 suggest a slightly bullish tone, with more call options expiring than put options.
According to Greeks.live’s report, Ethereum has recently taken the lead in the crypto rally, fueled by progress in ETFs, with a one-day rise of 20%. The short-term options implied volatility (IV) reached 150% at one point, significantly higher than Bitcoin’s current IV for the same period.
However, the divergence between Bitcoin and Ethereum is now evident. While Ethereum’s bullish sentiment remains strong, maintaining high IV levels for each major term is challenging in terms of overall market trading and structure.
This suggests that calendar spreads may be a better option. In contrast, Bitcoin appears to have a more balanced distribution between long and short positions, with stronger forces selling call options.
Magazine: The real risks to Ethena’s stablecoin model (are not the ones you think)