Bitcoin’s
The Put-Call ratio jumped ahead of Friday’s multi-billion dollars options in the derivit, but the traditional Bearish interpretation could not tell the whole story at this time.
The put-call open ratio of interest refers to the ratio of actively put contracts on active contracts to call one hour. An increase in the put-call ratio indicates a bias towards the options, offering protection against downside risks, and is interpreted as representing a sentiment in the bearish market.
However, the latest spike is at least partially driven by “cash-secured puts” —a produce-generation and approach to BTC accumulation. The approach involves the sale (writing) that puts options, a move that is similar to the sale of insurance against price drops in exchange for a small upward premium.
At the same time, the writer maintains enough cash (in stablecoins) on the sideways to buy BTC as obliged if the price drops and the consumer decide to use the right to sell BTC at the predetermined higher price.
The premium collected by writing the Put option represents a yield with the potential for BTC accumulation if the consumer option makes the choice.
“The put/call ratio rose to 0.72 – from just over 0.5 in 2024 – indicating a growing interest in placing options, often structured as secured cash,” Lin Chen, head of business development – Asia in the derivit, told CoinDesk.
Options cost $ 14 billion floating
On Friday, at 8:00 pm, a total of 141,271 BTC option contracts, costing more than $ 14 billion, representing more than 40% of the total open interest would expire in the derivit, according to the data resources of the derivit.
In total due to the negotiation, the 81,994 contracts are calls, while the rest is placed options. In the derivit, a contract of choice represents a BTC.
Chen said that nearly 20% of the expired calls were “in-the-money (in income),” which means that a large number of market participants have calls to strikes under the current BTC market rate of $ 106,000.
“This indicates that consumers perform well in this cycle, which is aligned with the ongoing flow of BTC ETFs,” Chen said.
Holders of In-the-Money (ITM) calls are already profitable and may choose to book income or bind their positions as closely expiry, which can add volatility to the market. Alternatively, they can roll (shift) positions in the next expiration.
“Since this is a major quarterly expiry, we hope to increase volatility around the event,” Chen said.
Extensive speaking, most calls are set to expire out of money or worthless. Notably, the $ 300 call has the highest open interest, an entrepreneur probably hopes to sign for an outsized rally in the first half.
Max pain for expiry is $ 102,000, a level where buyers of choice will suffer more.
Focus on $ 100k- $ 105k range
The latest market flow indicates expectations for recurrent trading, with a slight bullish bias as we approach the expiration.
According to data monitored by the leading crypto wintermute market manufacturer, the latest flows are skewed neutral, with entrepreneurs selling straddles – a volatility of bearish strategy – and writing calls around $ 105,000 and shorting puts $ 100,000 for expiry of June 27.
“For #BTC options, the skew neutral flow with a straddle/call that sells around 105k and briefly placed at 100k (27 June), pointing out the expectations of tight price action. Expiration. The selective call purchase (108k -112k, jul/sep) adds a bull -bull tilt. OTC Desk at Wintermute, told CoinDesk in an email.
Read more: Bitcoin can spike in $ 120k, here are 4 factors that strengthen the case for a BTC Bull Run
