Bitcoin options worth over $10 billion are approaching expiration on Friday at 08:00 UTC, creating a critical focus on the $95,000 to $105,000 price range. Currently, 93,131 monthly options contracts are due for settlement, with 53% being call options—indicating bullish sentiment—while the rest are puts, which serve as protective bets against price declines. On the Deribit exchange, one option represents one Bitcoin, with significant exposure clustered around the $95,000, $100,000, and $105,000 strikes. These positions expose traders to considerable net directional risk based on Bitcoin’s price movements.
As expiration nears, gamma remains a vital factor in understanding potential price volatility. Gamma measures how sensitive option prices are to changes in Bitcoin’s value, intensifying as traders adjust their positions. Volmex, a decentralized trading platform, noted a major concentration of delta exposure in the upcoming May 30 expiry, particularly at the $100,000 strike. The commentary hinted that any price swing could activate aggressive hedging among market participants, potentially leading to heightened volatility.
Despite this looming expiry, Bitcoin is currently trading at $107,700, having recently hit a record above $111,000. Interestingly, Deribit's DVOL index, which tracks expected volatility, has been decreasing, indicating less market anxiety despite the upcoming options expiration. Volmex's annualized one-day implied volatility index suggests a slight uptick to 45.4%, predicting a 24-hour price shift of about 2.37%.
As expiration nears, gamma remains a vital factor in understanding potential price volatility. Gamma measures how sensitive option prices are to changes in Bitcoin’s value, intensifying as traders adjust their positions. Volmex, a decentralized trading platform, noted a major concentration of delta exposure in the upcoming May 30 expiry, particularly at the $100,000 strike. The commentary hinted that any price swing could activate aggressive hedging among market participants, potentially leading to heightened volatility.
Despite this looming expiry, Bitcoin is currently trading at $107,700, having recently hit a record above $111,000. Interestingly, Deribit's DVOL index, which tracks expected volatility, has been decreasing, indicating less market anxiety despite the upcoming options expiration. Volmex's annualized one-day implied volatility index suggests a slight uptick to 45.4%, predicting a 24-hour price shift of about 2.37%.
