$3 Billion Bitcoin Options Expire Nov 26

On Friday, November 26, 51,900 bitcoin options contracts totalling nearly $3 billion will expire.

Most of the open interest is concentrated in call options with a rate above Bitcoin’s record price. Option buyers will suffer the most damage when the options expire at a rate of $58,000.

Despite a 17% pullback in the last 14 days from an all-time high of $69,000, bitcoin call options dominate significantly at the November 26 expiration.

At first glance, in the cryptocurrency market, by the end of the week, call options on Bitcoins with a total value of $1.9 billion outnumbered put options with a total value of $885 million by 113%. However, it is likely that 90% of the bullish rates will be wiped out on Friday.

At the time of writing, Bitcoin is trading below $56,000. Therefore, if the trend does not change, the market will continue to trade 720 call options versus 7,490 put options. The net result favours $365 million put options.

But if the rate rises and Bitcoin trades in the range of $56,000 to $58,000, the ratio will be 2,630 calls versus 4,840 puts. The net result is $125 million in favour of the depreciated instruments (put).

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