Bitcoin
Options worth billions of dollars are expected to expire this Friday at 8:00 am UTC on Deribit, which makes $ 95,000 to $ 105,000 a critical zone for potential volatility and directional indices.
At the time of the press, a total of 93,131 Bitcoin monthly options contracts, worth more than $ 10 billion, had to be settled, with 53% of the calls and the rest being put. A purchase option represents a bullish bet on the market, while the sales option offers insurance against price slides. On Deribit, an option contract represents a BTC.
The distribution of open interests is such that a large amount of “Delta” exhibition is grouped to $ 95,000 strikes, $ 100,000 and $ 105,000. This means that traders occupying positions to these strikes have a significant net directional risk for the price of Bitcoin.
Gamma, which measures the sensitivity of options to changes in BTC prices, will reach a peak as expiration approaches. Consequently, price volatility could trigger widespread coverage by investors and market manufacturers (who are still on the opposite side of the investor professions), more exacerbating the turbulence of prices.
“The largest concentration of Delta is in the expiration of May 30 of the deribates of May 30, with an AULTA exposure of $ 2.8 billion led by $ 100,000 strikes, $ 105,000 and 95,000, which has a potential for the strong gamma flows in the end of the month,” said the Crypto decentralized Volme trading platform in an explanator on X.
“Any movement can trigger aggressive coverage of the concessionaire, a fragile gamma environment! Expect volatility!” Added Volmex.
At the time of the press, Bitcoin changed hands at $ 107,700, having reached a record over $ 111,000 in the previous week, according to Coindesk data.
The index Dol of Deribit, which represents the implicit or expected volatility of 30 days based on options, continued to decrease, suggesting a minimum concern concerning the volatility motivated by the expiration to come.
The Volmex implicit voterability index is slightly higher at 45.4%. This implies a 24 -hour price decision of 2.37%.
