On May 7, the Ether (ETH) option contract worth a total of $ 470 million will expire. What awaits investors who anticipate a decrease in ETH price can only be described with the word “slaughter”.
If Ether holds above $ 3,100 until Friday, almost all of the 75,909 sell options will become worthless.
The price of Ether has skyrocketed, thanks to the decentralized finance (DeFi) sector, whose total value has exceeded $ 60 billion.
Put options that expire on May 7, neutral or reflect the prospect of a decline, may become worthless at the maturity date, although they currently have an open position of $ 250 million.
About: What is a Bitcoin option? How do options contracts work?
Although the put / call options ratio seems in favor of put options at 13 percent, when the transaction prices are analyzed one by one, it is seen that there are almost no put options above $ 3,100. Ether’s 55 percent rally in the past 30 days has caught the bears off guard, often focusing on $ 2,800 and gold.
Bulls, on the other hand, have a very positive approach to Ether’s performance. The open positions of 66,350 call options in total are worth $ 220 million. Reflecting a neutral or bullish expectation, 13.5 percent of these call options currently have a transaction price of $ 3,200 or above.
Given that the majority of options with a transaction price of over $ 2,700 are considered call options, options expiring on May 7 could put upward pressure on the Ether price.
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