The recent recession of the cryptocurrency market has caused the bet of Bitcoin (BTC) of $ 120,000 once popular to lose its crown due to the bet of $ 100,000 on a sign that merchants are reevaluating their upward expectations.
At the time of publication, the call of $ 100,000 was the most popular BTC options contract in the exchange, with a notional open interest of $ 1.55 billion. The notional open interest represents the dollar value of the number of active options contracts at a given time.
Meanwhile, the call of $ 120,000, the former leader until last month, was found in position number two, with a notional open interest of $ 1.33 billion.
A call gives the buyer the right, but not the obligation to buy the underlying asset at a predetermined price on a later date. A call buyer is implicitly optimistic in the market. Therefore, a significant construction of open interest in calls with greater money out of money, such as $ 100,000 and $ 120,000, reflects bullish expectations.
The lowest change in the most preferred call to the $ 100,000 strike probably shows merchants opting for a more conservative bet following the recent price accident at less than $ 80,000. In addition, it can indicate a broader reevaluation of bullish feeling.
The risk reversions of 25 Delta-Delta, which measure the difference between the implicit volatility (demand) of the highest strike calls in relation to the lowest strikes, show negative readings or a bias for the protection sales options for the expiration of May. It is representative of the fears of an extended price drop in the market.
The price is still optimistic in favor of the purchase options after May. In addition, the dollar value of the total number of open calls at the time of the publication was more than $ 16 billion, almost double $ 8.35 billion in sale options.
