Massive $5.4 Billion Options Expiry: Traders Double Down Despite End-of-Cycle Warnings
Over $5.4 billion in Bitcoin and Ethereum options are expiring, as traders maintain short volatility bets despite warnings of market fragility.Summary
A massive $5.4 billion in Bitcoin and Ethereum options are set to expire on Deribit, occurring while analysts caution about structural fragility and end-of-cycle signals in the market. Bitcoin is trading near $102,159, with maximum pain for options at $107,000, and the Put-to-Call ratio of 0.79 suggests cautious optimism. Ethereum is trading near $3,347, with defensive positioning indicated by a near 1.0 PCR. Despite warnings from analysts like Greeks.live regarding market fragility, many traders are aggressively selling options, doubling down on short volatility positions, betting that downside risk is overestimated. This strategy, which includes selling puts and calls, can lead to severe losses if prices breach key clustered strike levels. The expiration today will test these short volatility bets, especially following recent macroeconomic events like CPI data and Fed comments that dampened ETF inflows.
(Source：BeInCrypto)