Gate Square “Creator Certification Incentive Program” — Recruiting Outstanding Creators!
Join now, share quality content, and compete for over $10,000 in monthly rewards.
How to Apply:
1️⃣ Open the App → Tap [Square] at the bottom → Click your [avatar] in the top right.
2️⃣ Tap [Get Certified], submit your application, and wait for approval.
Apply Now: https://www.gate.com/questionnaire/7159
Token rewards, exclusive Gate merch, and traffic exposure await you!
Details: https://www.gate.com/announcements/article/47889
Expiration day of crypto options: $2.04 billion options will expire!
The market is following a slightly choppy course. The nominal value of Bitcoin options expiring today is 1.62 billion dollars. The put/call ratio of the expiring 16,561 contracts is 0.76. Also, the maximum pain point of these options is 98,000 dollars.
On the other hand, Ethereum has 153,608 contracts with a nominal value of 421.97 million dollars. The put/call ratio of these contracts that have expired is 0.48. In addition, the maximum pain point for the cryptocurrency is $2,700.
What does the expiration of options mean for cryptocurrencies?
During the writing, Bitcoin is trading at $98,284 with a daily increase of 1.03%. Ethereum is trading at $2,752 with a 0.682% increase. In the context of options trading, the put/call ratio below 1 for BTC and ETH indicates that call options are more common than put options.
However, according to the maximum pain theory, Bitcoin and Ethereum prices may gravitate towards their own usage (strike) prices as the expiration approaches. Doing so would cause most options to expire worthless and thus lead to 'maximum pain'. This means that BTC and ETH prices could experience a slight correction as options expire.
()(