The previous weekend’s info showed us that the most active BTC options contracts were calls for $28K, $32K, and $36K by December. It seems that options traders are speculating that BTC prices will go over the record high the digital gold got to in December 2017.
In the middle of September, Skew.com’s employees, on the task to research info, reported a number of weird call options for the last month of 2020 that were very much over the 2017 peak.
The 2017 peak saw Bitcoin touch $19,6k for each BTC:
New open positions have taken place on the Deribit cryptocurrency financial derivatives site. The action happened when $570M (notional) of the Bitcoin Options Contracts expired at the end of August at Deribit.
We could see 752 open positions on $36K, 462 contracts on $32,000, and 230 on $28,000. In addition, around $9,000 and $9,750 calls were planned for the end of September. Answering Skew’s December Tweet message, one person wrote revisiting the end of Q4 will be fun.
Basically, BTC options are cryptocurrency-derived products that offer an individual or group the right to purchase and sell the digital coin at a previously decided strike cost while leveraging an expiration time, too. In such cases, set well over the previous record of Bitcoin, the strike cost is fixed, and the expiration date is the end of the year.
In the August Deribit newsletter, it said that while rivalry is on the rise, Deribit remains at the front with circa 79 percent of the overall Bitcoin Options OI owned.
Showing a graph of the overall Bitcoin Options open interest by expiration positions 48 hours before the weekend, Skew highlighted the trading community is getting ready for a fairly chunky bitcoin options expiration at the close of the month.
Skew’s crypto analytics team announced already $750M in open interest is waiting.
BTC info and insights researcher from Ecoinometrics also addressed BTC options marketplaces emanating from the CME Group.
In the process of analyzing a variety of marketplaces and Chicago Mercantile Exchange’s derivatives behavior, Ecoinometrics said it did not believe that marketplace sentiment had shifted.
If we consider from a tech point of view, what we see at the moment is BTC moving the previous resistance level to $10K to transform into a boost. From May to the end of July, BTC was trapped under $10,000. But, for a week now, $10K is staying high.
Where the CME BTC options market is concerned, the post points out that calls carry on to dominate the scene with 5 calls for every 2 puts.
The article adds that one can see that options traders are purchasing puts on the front month in order to hedge themselves or gain from what they may see as a brief drop. Yet, when the long run is concerned, the positive run is still unchanged.
Monday’s Bitcoin spot markets were on a roll, climbing over four percent in the afternoon (ET) trading sessions to the $11,000 zone again.
A leap in worth has taken place in the midst of a variety of volatilities and macroeconomic happenings, such as the forthcoming Federal Reserve meeting set for Tuesday and Wednesday. Investors can be watching other unsettled occurrences, such as the US election and the nation’s volatile currency.