Market Imbalance and Potential Volatility Ahead of Bitcoin Options Expiry
- Only about 20% of the $10.6 billion in open interest is sitting in-the-money (ITM), while 80% is out-of-the-money (OTM).
- The max pain price for the June 26 expiry is currently at $74,000, approximately 14% above Bitcoin’s current spot price of around $65,000.
- The put-to-call ratio stands at 0.87, with 87,156 call contracts compared to 76,241 put contracts.
- The $60,000 put option has roughly $450 million in exposure, serving as a significant support level.
- The $80,000 call option holds about $406 million, representing a notable resistance level.
With the current market conditions showing a strong imbalance between ITM and OTM options, traders may experience heightened volatility as they adjust their positions ahead of expiry. The proximity of Bitcoin’s spot price to the max pain level could further influence market dynamics.
As it stands, only about 20% of open interest is ITM, suggesting potential for sharp price movements as traders respond to these imbalances.(Source)
