The open positions of Bitcoin options have increased by 60 percent in the past two months to $ 13.5 billion. Both the Bitcoin price broke a record and the increased open position resulted in the value of contracts due on March 26 to reach $ 6.1 billion.
While most exchanges offer monthly options, very few offer weekly options. The largest due date ever was seen on January 29, 2020, when the $ 3.5 billion option contract expired. This number represented 36 percent of the total open positions at that time.
The chart above shows that the contract worth 100,400 BTC will expire on March 26. This number is 45 percent of contracts that will expire in the next 11 days.
Options, which are divided into two groups as buy and sell, offer investors the option to trade at the pre-determined price on the maturity date. However, investors are not obliged to trade at price levels that seem unreasonable. Therefore, it should be noted that not all open options will be traded.
Imbalance in buy / sell ratio
To understand the current expectation in options markets, the number of call and put options for each trade price should be examined.
The potential impact of Friday’s due date can be calculated more easily by excluding put options below $ 47k and call options above $ 66k. It seems unlikely that Bitcoin will show a 17 percent price movement until Friday.
What remains are call options worth $ 1.13 billion with a transaction price between $ 32-64 thousand and put options up to $ 47,000 with a value of $ 462 million. The imbalance of $ 668 million indicates that the bulls will be in control at the due date.
The opinions and views expressed herein are those of the author alone and do not reflect those of Cointelegraph. Every investment involves risk. Do your own research before making a decision.