Advantage in bitcoin options market moves to bears

Bitcoin (BTC) price is recovering after a 16 percent correction on April 18.

Some analysts say there are 9,000 BTC deposited in Binance behind the drop, while others focus on the hash rate caused by the coal mining accident in China. Whatever the reason, options market makers had to readjust their positions

The situation is balanced at first sight

Before the correction on April 18, BTC surged up to $ 64,900, gaining 74 percent in three months. Therefore, it seems quite natural for investors to turn to options that provide protection more.

Bitcoin options with an expiry date of 23 April. Source: Bybt

While neutral and bullish call options give buyers more protection on the upside, the same goes for bearish put options. Investors can measure the price expectation of investors by measuring the risk exposure of each price level.

The number of contracts due on April 23 reached 27,320 BTC. From the current exchange rate of 56,500 dollars, this amount is 1.55 billion dollars. However, there seems to be a balance between bulls and bears, with call options accounting for 45 percent of the open position.

Advantage bears after the last crash

Although the situation seems neutral at first glance, it should be taken into account that call options above $ 64,000 are invalid due to only two days remaining until the expiry date. With the 6,400 call options currently traded below $ 50, the bears seem to be even more intense.

Of the remaining 19,930 BTC contracts, 70 percent are put options in neutral or pending decline. Considering that open positions are worth $ 1.13 billion, this gives the bears a $ 450 million advantage.

It was determined that 3 thousand BTC buying options below $ 58 thousand make up only 24 percent of the total open position.

The opinions and views expressed herein are those of the author alone and do not reflect the views of Cointelegraph. Every investment involves risk. Do your own research before making a decision.

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