Cryptocurrency
How Investors Could See “Max Pain” Following Friday’s $740m Bitcoin Options Expiry
As reported on NewsBTC, “In just a few days, the Bitcoin options market will see a massive $740 million contract expiry, which accounts for roughly 37% of the total outstanding open interest within the market. “This expiration may have some impacts on the crypto market’s price action, as those holding both calls and puts may […]
As reported on NewsBTC, “In just a few days, the Bitcoin options market will see a massive $740 million contract expiry, which accounts for roughly 37% of the total outstanding open interest within the market.
“This expiration may have some impacts on the crypto market’s price action, as those holding both calls and puts may move to cover or roll-over their positions depending on where the benchmark cryptocurrency is trading at around this time.
“The vast majority of these contracts are on Deribit – signaling that the platform still has absolute domination over the crypto options market.
“The platform is also noting that over the next several months, option holders could experience a ‘max pain’ scenario if Bitcoin ranges between two key levels.
“Because both of these levels have been established as strong support and resistance, there’s a real possibility that this range could persist throughout the rest of the year, striking a blow to options holders…”