Bitcoin options expiry was characterized by traders reducing risk. Greeks.live data showed weak activity and lower implied volatility. Defensive positioning also appeared.
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- Greeks.live reported that 21,000 Bitcoins options with a notional value of $1.6 billion expired on Friday.
- Ethereum option activity slowed as 129,000 contracts expire, and ETH spot is below maximum pain levels.
- After Bitcoin’s recent rally, the lower implied volatility as well as defensive whale tradings indicate a weaker appetite.
Greeks.live stated that on May 22, 21,000 Bitcoin Options expired, with a Put-Call Ratio of 0.66. The options had a pain threshold of up to $78,500 and notional values of $1.6 Billion. Also, 129,000 Ethereum expiration options were shown, which had a 0.92 Put-Call ratio with $2,200 maximum pain and $1.6 billion in nominal value.
Bitcoins rally of one and a half months lost its momentum. BitcoinBTC) traded near $77,500 on May 22, while Ethereum (ETHCrypto.news reported that the value of Bitcoin (BTC) was close to 2,130 dollars. This placed Bitcoin close to the BTC maximum pain level, and Ethereum just below its Ethereum level.
The traders are less willing to take on risk
Greeks.live stated that the market was quiet this week. Only 5% Bitcoin options were expired and Ethereum’s settlement weekly accounted for only 5%. It is clear that the smaller number of positions indicates less expiration compared to larger monthly settlement events.
The company said that BTC settlement volumes were modest and maximum pain levels were close to spot prices. This made the pin and gamma effect visible as traders monitored whether Bitcoin would settle near $78,500.
Ethereum’s flow of options also decreased. Greeks.live reported that ETH settlement volumes were about half the level of last week, and spot prices remained below $2,200 maximum pain. This kept traders on the edge of their seats, wondering if ETH would be able to regain its settlement zone following a quiet week.
It said that Ethereum’s short-term rise in the share of Ethereum options this month has ended. The firm said that the short rise in Ethereum options shares this month had ended. “IV is likely to decline in the short term after settlement.” This statement is a cautionary view and not an indication of a market movement.
Next setup is characterized by lower volatility
Greeks.live stated that the implied volatility fell across all maturities while the skew continued to decrease. Bitcoin’s implied volatile fell below 35 percent across major terms. Ethereum’s also dropped below 50 percent, and short-term rates are expected to be lower.
The broader picture is reflected in the report. Related articles noted Deribit’s Bitcoin open interest on May 21 reached $31.3 Billion, while the larger expiry of May 29 has $6.25 Billion in contracts with a maximum pain level of $75,000
Also, earlier market coverage showed The same cooling pattern. On May 15, around 25,000 Bitcoin option worth over $2 billion expired. Traders are watching for near-term risk of downside despite the lower put-call rate.
Whales have continued to develop low-cost, protective protection. Greeks.live reported that market expectations for volatility remain low. This keeps the attention on whether Bitcoin is able to defend its current support, or whether it will drift towards lower option strikes.
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Source: crypto.news
