$2.7B worth of Bitcoin and Ether options set to expire

A significant $2.7 billion worth of Bitcoin and Ether options are set to expire on May 24, providing valuable insights into the sentiment of the crypto market.
According to a post by Greeks.live on X, there are 21,000 Bitcoin (BTC) options that are about to expire, with a put/call ratio of 0.88. This suggests a fairly even balance between buyers and sellers, slightly favoring call options.
The “maximum pain point,” which is the price at which most option buyers would experience losses, is $67,000, representing a total value of $1.4 billion.
While the upcoming expiration of 21,000 contracts is noteworthy, 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.
Deribit’s data shows that long positions currently dominate when it comes to open interest (OI), with a substantial $830 million tied to the $70,000 strike price.
Additionally, higher strike prices also have significant 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 significant OI suggests that many contracts have yet to be settled, 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 350,000 Ether (ETH) contracts set to expire, 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 sentiment, with more call options expiring than put options.
According to the report from Greeks.live, Ethereum has recently taken the lead in the crypto rally, driven by progress in ETFs, with a one-day increase 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, there is now a clear divergence between Bitcoin and Ethereum. While Ethereum’s bullish sentiment remains strong, maintaining high IV levels for each major term is challenging from the perspective of overall market trading and structure.
This indicates 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 selling call forces.
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