A total of 53,400 Bitcoin (BTC) options contracts expire on May 27. The buy/sell ratio of 1.32 in total open positions of 2.1 billion dollars shows that the bulls have an advantage at first glance.
However, the 33 percent depreciation of Bitcoin in May rendered call options worth more than $ 46 thousand one day before expiration.
The bears gained the upper hand last week
As expected, the bears maintained the advantage that had existed since last week and managed to keep Bitcoin below $42,000.
The bears, who profited from last week’s expiration, had the opportunity to play on the fact that the Bitcoin price would remain below 45-50 thousand dollars.
Note that there are only 2,550 BTC buy options below $42,000. This amount, which corresponds to a $ 100 million open position, is only 8 percent of the total. As we mentioned above, call options above $46,000 have already become worthless.
On the other hand, the open interest of 17,600 BTC put options above $36,000 is $685 million, giving the bears a $585 million advantage.
It should also be noted that the spot exchange volume of BTC is over $ 10 billion daily. Nevertheless, concurrent maturity in the futures and options market may increase volatility.
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