On Nov. 13, a total of $525 million in Bitcoin (BTC) options open interest is set to expire. This is similar to last week when $470 million in options open interest also expired. This presents somewhat unusual activity, as most volume goes through monthly and quarterly options. On Nov. 5, put (sell) options open interest was 30% larger than call (buy) ones. Deribit exchange holds $431 million open interest for this Friday’s expiry and Bit.com has $72 million. Before coming to quick conclusions on whether this figure is bullish or bearish, it’s important to take a more detailed view in …
Typically, traders become skeptical after Bitcoin (BTC) "completes" a strong performance like the stellar move from $12,000 to $15,950 seen over the past few weeks. The 35% gain over the past 30 days led some traders to conclude that BTC is over-extended and in need of a pullback. On the other hand, there are plenty of traders who are confident that the current bull run can continue. Generally, the market is displaying mixed signals as Bitcoin price fluctuates between $15,000 to $16,000, so many traders are left to rely on their bias to confirm their investment decisions, and this is …
As tempting as it can be to buy altcoins using perpetual futures, there are a few hidden traps that one should monitor closely. Over the past few years, numerous exchanges began to offer altcoin futures quoted in Tether (USDT) and stablecoin pairs, which eventually became the standard. This change is more convenient for most traders but still presents some serious issues for those willing to keep long positions open for more than a couple of weeks. Before opening any trade at an exchange offering perpetual futures, traders should be aware that stronger wicks can run stop losses, investors lose the …
On Nov. 4, the open interest on Bitcoin options reached a new all-time high. As this occurred, an even more curious case emerged. On Nov. 6, a total of $470 million in open interest is set to expire. This is rather unusual, as usually, monthly and quarterly concentrate the liquidity. At the moment, Deribit holds 75% of the open interest, followed by Bit.com with 13%. Oddly enough, on both exchanges, put options represent 65% of the outstanding notional. This ratio is the exact opposite of the Bitcoin (BTC) options aggregate market for the remaining dates, which favors call options by …
The open interest on Bitcoin (BTC) options contracts has reached a new all-time high at $2.9 billion. Interestingly, this feat happened only five days after the October expiry, which liquidated $400 million worth of options. Over the past six months, the options market has grown three-fold, causing investors to grow more curious about the potential impact upcoming expiries will have on the Bitcoin price. Data from Cointelegraph and Digital Assets Data also show that monthly Bitcoin transaction volume and BTC futures volume has been on the rise since the end of October. When analyzing options, the 25% delta skew is …