Friday, the Bitcoin options (BTC) worth billions of dollars will expire in drunkenness. The imminent regulations, although large, may not cause significant market volatility, said the Coindesk Stock Exchange.
More than 139,000 BTC options contracts, worth 12.13 billion dollars, representing almost 45% of the total BTC contracts active in all expirations, are due for the payment this Friday, according to the metrics of the data source.
More than 65% of the total open interest is concentrated in the purchase options which offer buyers an asymmetrical upper exposure, while the rest is in put options offering downward protection.
The quarterly expirations of these massive amplitudes are known to raise the volatility of the market, but this may not be the case this time, according to the continuous decrease in the implicit volatility index of 30 days Bitcoin (DVVAD). The index increased from 62% annualized to 48% in the weeks preceding the expiration, suggesting moderate volatility expectations.
Similar conclusions can be drawn from the perpetual annualized term base of around 5% in exchange, reporting a quieter financing environment.
“Despite the size of the expiration, the overall configuration – Dvol, moderate base and positioning of balanced options – is put to a relatively moderate expiration unless emerging external catalysts,” Luuk Strijers, CEO of deribit, told Coindesk.
A downside coverage
SKEW options, which measures the difference between implicit volatility (pricing) for calls compared to puts, shows the decreasing concerns of Friday expiration.
That said, the wider perspectives remain constructive.
“The bias of the 3 -day call is slightly positive, which indicates an immediate downward protection request while the bias of the call at 30 days is slightly negative, which indicates a more optimistic perspective in the medium term,” said Strijers.
Friday, the Ether (ETH) options worth 2.8 billion dollars.
