Crypto traders brace for short-term volatility with $2.4 billion options expiry on Friday


  • Bitcoin and Ethereum options worth $2.4 billion are set to expire on Friday. 
  • Data from Greeks.live shows that the options market looks bullish
  • The intelligence firm identified block trades that look bullish, $65,000 calls for BTC with expiration in September and December. 

Bitcoin and Ethereum options market looks bullish on Friday, according to data from intelligence tracker Greeks.live. The firm said it has identified two Bitcoin calls that show an underlying bullish sentiment among market participants. 

Bitcoin made a comeback above $60,000 on Friday, up nearly 7% from Wednesday’s low of $56,552, after the publication of a lower-than-expected increase in US Nonfarm Payrolls. 

Billions in Bitcoin, Ethereum options head to expiry

Analysts at Greeks.live identified Bitcoin call options that are unusual and have not been seen in a long time. Two noteworthy ones included $65,000 calls with expiration dates of September and December, both of which paid 93 BTC, approximately $3.35 million. 

A call option is a contract that gives the user the right to buy at a specified price within a time period. $65,000 calls with a September and December expiration date is therefore bullish since it implies options traders expect the asset’s price to rally and exceed this level by the end of this time period. 

BTC

Bitcoin $65,000 call for September and December

The second noteworthy trade is a September call ratio spread strategy. An options trader took a position to buy 600 BTC and sell 1,200 BTC at a net paid premium of 45 BTC. Specifics include the purchase of one copy of a $60,000 call and corresponding sell of two $90,000 calls. 

The net option paid premium is the total amount the options trader will receive for selling one or more options while simultaneously purchasing others. This includes the puts and calls mentioned in a strategy. 

Apart from that, a total of $2.4 billion in options, 23,000 BTC options with a notional value of $1.4 billion, and 330,000 Ether options for $1 billion, are expiring on Friday. Analysts at Greeks.live predict weakening of market confidence and said that volatility of all major terms could continue to decline. 

Bitcoin price is $60,666 and Ether is exchanging hands at $3,035 at the time of writing.


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