Bitcoin options with a notional value of approximately $6.44 billion are set to expire on Friday at Deribit. The current price is approaching $80,000, and the market is watching whether hedging transactions before and after the settlement of these contracts will amplify short-term volatility.
The maturity scale is close to one-fifth.
This batch of contracts involves a total of 81,700 Bitcoin options, including 44,600 call options and 37,100 put options. The put/call ratio is 0.83, indicating a relatively long overall position structure.
Calculated at spot price, the nominal value of this batch of contracts is approximately $6.44 billion, which is close to one-fifth of the outstanding Deribit Bitcoin option contracts, and settlement will be completed during the same period.
- Expiry time: Friday 08:00 UTC
- Number of contracts: 81,700
- Nominal value: $6.44 billion
Heavily concentrated positions of $75,000 and $80,000
Currently, the unliquidated call option contracts are mainly concentrated at two strike prices of $75,000 and $80,000. The report mentions that the notional position size within a 5% range of the current price has exceeded $500 million.
This means that if Bitcoin continues to fluctuate in these ranges, the party selling options will typically need to adjust their risk exposure by buying and selling spot assets, and related hedging transactions may become more active around the expiration date.
The market is also paying attention to the "biggest pain point," which is the price at which the maximum number of contracts expire and return to zero. Deribit estimates that the biggest pain point for this expiration period is between $68,000 and $70,000, which is about $9,000 to $11,000 lower than the current price.
ETF appears in the same week as Jackson Hole
The report indicates that the nominal value does not equate to the actual funds flowing in and out of transactions, and many contracts this week are quite far from the current price, which may result in them becoming invalid directly and not leading to any actual settlements.
Some market participants have stated that the week when options expire often seems more tense, but the actual impact is not necessarily always significant. In previous instances of larger-scale Bitcoin option expirations, the reaction in spot prices was also relatively limited.
However, this expiration coincides with other market events. In addition to option settlements, the market is also paying attention to the cash flows of spot Bitcoin and Ethereum this week, as well as the policy speeches during the Jackson Hole Conference.
Additional information:The report mentions that the scale of Bitcoin options expiring in September was nearly twice that of this time, and changes in derivative positions will still be an important point to observe in the coming weeks.
