Bitcoin
The options that are worth billions of dollars will expire this Friday at 08:00 UTC in Deribit, which makes the range of $ 95,000 to $ 105,000 a critical area for possible volatility and directional signals.
At the time of publication, a total of 93,131 Bitcoin monthly options, with a value of more than $ 10 billion, had to liquidate a liquidation, with 53% calls and the rest is applied. A purchase option represents an upward bet in the market, while the sales option offers insurance against price slides. In Delibit, an option contract represents a BTC.
The distribution of open interest is such that a large amount of exhibition “Delta” is grouped in the strikes of $ 95,000, $ 100,000 and $ 105,000. This means that merchants who have positions in these strikes have a significant net directional risk for the price of Bitcoin.
Gamma, which measures the sensitivity of the options to changes in the price of BTC, will reach its maximum point as the expiration approaches. Therefore, pricing volatility could trigger the generalized coverage of investors and market manufacturers (which are always on the opposite side of investor operations), exacerbating further price turbulence.
“The largest concentration of Delta is at the expiration of May 30 of Deribit BTC, with an exhibition of the $ 2.8B delta directed by strikes at $ 100k, $ 105k and $ 95k, which has a potential of strong gamma flows at the end of the month,” said the Volmex decentralized crypto trade platform in an explanatory in X.
“Any movement can trigger the aggressive coverage of the concessionaire, the fragile gamma environment! Wait volatility!” Volmex added.
At the time of publication, Bitcoin changed hands to $ 107,700, after having reached records greater than $ 111,000 the previous week, according to Coindesk data.
The DVOL DVOL INDEX, which represents the implicit or expected volatility of 30 days based on options, continued to decrease, which suggests a minimal concern for the volatility driven by the next expiration.
The implicit volatility index of Volmex’s annualized day marked a little more to 45.4%. That implies a 24 -hour price movement of 2.37%.
