140,000 ETH Options Are About to Expire

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As a seasoned crypto investor with battle-scarred fingers and a heart full of scars from past market rollercoasters, I find myself treading cautiously amidst the current calm waters of Bitcoin and Ethereum options markets. The low put/call ratios for both cryptos, particularly Ethereum’s 0.93, hint at an overly bullish market – a sight that makes me uneasy, given my years of experience witnessing the market’s volatile dance.

As an analyst, based on the data from Greeks.live, I’ve found that approximately 140,000 Ethereum (ETH) options are set to expire. Notably, the put-call ratio stands at 0.93, suggesting a slightly higher demand for put options compared to call options in this particular market.

The ratio is calculated by dividing open interest in put contracts by open call interest during the same period of time. It is usually treated as an important market sentiment indicator. A low put/call ratio suggests that the market is overly bullish (and vice versa). 

The most significant level of potential distress or loss for the top competing cryptocurrency occurs at around $2,625. This is because this price level has the highest concentration of option agreements. If the price reaches this point, it would result in the greatest financial losses for those who hold these option contracts.

Regarding Bitcoin, around 18,000 call and put options are due to expire. The ratio of puts (downside bets) to calls (upside bets) is approximately 0.83. The price point that could cause the most distress for option holders is currently at the crucial $60,000 level.

According to CoinGecko data, Bitcoin and Ethereum are trading at $60,870 and $2,666, respectively. 

According to Greeks.live, the current market appears incredibly tranquil, as evidenced by the ongoing decrease in positions held in weekly options. It seems that the most effective approach might be to exercise patience at this time.

Everyone’s on the edge of their seats as they eagerly await the upcoming speech by Federal Reserve Chair Jerome Powell, scheduled for this coming Friday in Jackson Hole, Wyoming, a highly anticipated event among traders and investors.

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2024-08-23 09:10