The volume of open interest (OI) in bitcoin options expiring in March reached an all-time high of $9.5 billion, according to data provided by The Block citing Deribit.
Contracts expiring on Friday account for 40% of the total volume of open interest, representatives of this cryptocurrency platform said.
Data: Deribit.
According to The Block, the volume of open interest in bitcoin options expiring in March peaked at $8.6 billion. Comparing this to data from January and February, where month-end contract volumes totaled $3.74 billion and $3.72 billion, respectively, a significant increase in activity can be seen.
Data: The Block.
Of the $9.5 billion mentioned on Deribit, $9.5 billion is expected to end up “in the money” at the current bitcoin price of $70,000. The “maximum pain” level for traders is located at $50,000.
Representatives of the platform point out that many options have become profitable due to the recent rise in quotes, which may encourage traders to hedge positions or speculate on further price movements. Such activity, they argue, could increase pressure on the bitcoin exchange rate or increase volatility.
Deribit’s Chief Commercial Officer, Luca Strayers, notes that the cryptocurrency market remains quite optimistic, judging by the derivatives data. He also emphasizes that there is open interest in bitcoin options with a $100,000 face value worth $1.2 billion.
“The parameters are decent […] for both bitcoin and Ethereum contracts with short maturities and improve when looking at longer maturities. This means that calls are more expensive and in greater demand than puts,” he added.
According to the lead manager’s analysis, since the beginning of this year, the weighted average ratio of call options to put options for Ethereum has increased from 0.3 to 0.5. At the time of expiration in March, this ratio reaches 0.83, for April it is 0.64, for June it is 0.33, and for September it is 0.31.
“In other words, there is more short-term bearish outlook and more optimistic positioning on the far horizon,” he explained.
In early March, ForkLog reported a significant increase in open interest among investors in call options with a strike price of $70,000 and an expiration date of March 29.
Earlier, Goldman Sachs noted an increasing interest from their clients in products related to digital assets.
