Ethereum Volatility Likely on the Horizon as Options Expire
A large amount of Bitcoin and Ethereum options contracts are about to expire. Moreover, these events often cause price volatility for the underlying assets. There has been a significant shift in derivatives trading activity, with Ethereum options trading surpassing that of Bitcoin. 37,000 Bitcoin options are about to expire with a notional value of just over $1 billion. However, this number is eclipsed by the 256,000 Ethereum options that will also expire this month. Their notional value is a whopping $4.8 billion. Analyst ng industriya na si Colin Wu Nagkomento on the massive shift in derivatives trading. “The Shanghai upgrade is coming, and the trading of Ethereum options has surpassed that of Bitcoin for the first time in more than a month.” Ethereum Options Expiry Ethereum options are derivatives contracts that allow traders to speculate on the price of ETH. They allow traders to buy or sell Ethereum at a specific price, the strike price, at a certain date of expiry. They are also more flexible than futures which have fixed expiry dates. According to Deribit, Ethereum Open Interest (OI) stands at almost 2.6 million open contracts that have yet to be settled. Ethereum Options Open Interest Chart by Deribit Furthermore, there is a put/call ratio of 1.09 for