BTC’s $ 12B quarterly options settlement looks balanced and can be conquered, says deribit
Bitcoin (BTC) options worth billions -billions of dollars will expire in the derivit on Friday. The upcoming settlement, though large, may not result in significant volatility in the market, the exchange of CoinDesk said.
More than 139,000 BTC option contracts, which cost $ 12.13 billion, representing about 45% of the total active BTC contracts in all expirations, should be for the setting this Friday, according to the data source resource Derivit metrics.
More than 65% of the total open interest is concentrated on call options that provide consumers with an asymmetric bullish exposure, while the rest puts options that offer downside protection.
The quarterly expires such massive magnitude is known to breed volatility in the market, but that may not be the case at this time, by continuing to reject the Bitcoin 30-day indicated Volatility Index (DVOL). The index dropped from an annual 62% to 48% in the weeks leading to expiry, suggesting the constituent expectations of volatility.
Similar conclusions can be drawn from the annualized continuous futures that are the basis of nearly 5% in the exchange, which signed a calm funding environment.
“Despite the size of the expiration, the overall section -low DVOL, moderate basis, and balanced positioning options -points on a relatively covered expiration unless the external catalysts appear,” Luuk Strijers, CEO of the deribit, told CoinDesk.
Some downside hedging saw
The skew options, which measure the difference between indicated volatility (pricing) for calls associated with the placed, reveal concerns of falling lead-up expiry until Friday.
That being said, the broader perspective remains constructive.
“The 3-day put-call skew slightly positively indicates some immediate demand of downside protection while the 30-day put-call skew is slightly negative indicating a more bullish perspective on the medium term,” Strijers said.
Also expiring Friday is the Ether (ETH) options worth $ 2.8 billion.
