A crypto options exchange, Deribit, is preparing for a historic week as it anticipates one of its largest options contract expirations with over $15 billion in Bitcoin and Ethereum options set to expire.
The breakdown includes $9.5 billion in Bitcoin options open interest out of $26.3 billion, and $5.7 billion in Ethereum options open interest out of $13.2 billion, accounting for 40% and 43% of the total OI, respectively.
This surge is attributed to recent price rallies in both cryptocurrencies, leading to higher in-the-money (ITM) expiries and less impact from lower max pain levels.
Analyzing market volatility, Deribit notes a contango in the volatility surface for both BTC and ETH, with current implied volatility (IV) levels at 63% and 67%, respectively. The platform anticipates healthier levels of around 80% further along the curve, indicating expectations of relatively stable prices until expiration.
Additionally, approximately $695 million of the $1.9 billion outstanding in futures contracts are set to expire, with the highest open interest (OI) in dated futures across any crypto market.
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