Sub-$60K monthly close will make Bitcoin's $3.9B options expiry a non-event
April 28, 2021. Summarized by summa-bot.
Compression ratio: 29.7%. 1 min read.
Bitcoin options traders hoped for a $60,000 monthly close, but the balance between calls and puts signal the expiry will be a non-event.
Even though the Bitcoin price recovered $5,800 over the past 48-hours, in the options markets, the bulls were not able to take the bears by surprise as both sides are virtually balanced for April 30 expiry.
April will be no different, with 72,000 BTC option contracts worth $3. 9 billion at the current $54,500 price are set to expire.
While the neutral-to-bullish call options dominate with 41% larger open interest for April 30, a more detailed analysis is needed to interpret this data.
To understand how these competing forces are balanced, one should compare the calls and put options size at each expiry price (strike).
The ultra-bullish options are now effectively worthless because there is no benefit from gaining the right to acquire BTC for $80,000 on the April 30 expiry.
The neutral-to-bullish call options up to $58,000 amount to 9,950 BTC contracts.
On the other hand, the more bearish put options down to $51,000 total 12,000 BTC contracts, currently worth $650 million in open interest.
The futures and options expiry at Deribit, OKEx, and Bit. com takes place on April 30 at 8:00 AM UTC.