Traders Prepare for $8.8 Billion Bitcoin Options Expiry
- The year-end options expiry for Bitcoin (BTC) is set for December 26 at 8:00 am UTC, involving $8.8 billion in contracts.
- Total open interest for call options is $6.45 billion, while put options stand at $2.36 billion, indicating a bullish sentiment.
- Call options with strike prices above $200,000 have less than a 3% chance of profitability based on current pricing models.
- Nearly $900 million in put options are targeting price ranges between $50,000 and $80,000 for the same expiry date.
- Professional traders utilize strategies like Call Diagonal Spreads and Inverse Call Butterflies to manage risk and leverage potential gains.
Despite the high open interest in call options, many traders are hedging against bearish movements with substantial put positions below current market levels. The prevailing sentiment reflects a mix of bullish strategies alongside protective bearish bets.
As traders approach the December expiry, only about $878 million in call open interest may remain valuable if BTC trades near $116,500.(Source)
