Options on Bitcoin (BTC) and Ethereum (ETH) totaling $1.5 billion are approaching expiry, while the market remains relatively calm. However, this stability may be short-lived.
The annual central bank meeting in Jackson Hole is seen as the month's most notable macro event, with investors focused on potential interest rate cuts by the Federal Reserve.
According to Deribit, over $1.12 billion in Bitcoin options are set to expire, with a maximum pain point of $60,000. This batch includes 18,440 contracts, a decrease from last week's 24,383, with a stable put-to-call ratio of 0.83.
The maximum pain point in options trading is where the highest number of options expire worthless, causing the most financial loss for option holders and least payout by sellers. This level often sees market makers have the strongest incentive to steer the price.
The put-to-call ratio, comparing puts (bets on declines) to calls (bets on increases), provides further insight. A ratio below 1 indicates a bullish sentiment, while a ratio above 1 suggests a bearish outlook.
For Ethereum, $378.39 million in options are set to expire, covering 141,410 contracts, down from last week's 183,821, with a maximum pain point of $2,625 and a put-to-call ratio of 0.92.
Analysts from Greeks.live noted that this week’s macro events and data did not cause major market movements, leading to a decline in historical volatility and decreased volatility expectations in the options market.
Currently, Bitcoin is trading at $61,270, showing a 0.7% increase in the past 24 hours. Similarly, Ethereum has risen by 2.1% and is approaching $2,700.
Historically, options expirations often trigger sharp but temporary price movements, leading to volatility and uncertainty. However, the market typically stabilizes shortly after expirations.
