Bitcoin Options Expiring
By (OMG)Old Man Gamer | (OMF) Old Man's Finances | 5 minutes ago
Seeing as I am a trader and have been for some years now as a sideline, I found the options expiry very interesting seeing as 83k BTC is going to make quite a big splash. We have also seen that the BTC whales are Hodling and the price has been quite stable between $10500 and $11000 and I have liquidated a few of my lower positions in BTC and ETH so that I can do some re-buys at a lower level.
"Although the current $1.9 billion worth of options signal that the market is healthy, it’s still unusual to see such heavy concentration on short-term options."
BTC options have now hit Billions and it can lead to some serious drops, this is by no means a set fact before Friday but it is definitely something to be kept in mind when opening and positions before then. I have been locked into some low level trades over the last few weeks seeing I missed my last buy-in bottom by 4.2 % average on my trading coins.
"This is the opposite of the last ten days, as BTC’s 3-month implied volatility ceded to 63% from 76%. Although not an unusual level, the rationale behind such relatively low options premium demands further analysis."
Anyone that has traded on an exchange in regards to Crypto will be able to tell you that there is no silver bullet but large market movements are definitely something to watch out for. I am setting up with a small liquidation in hopes of evening out that missed bottom buy mentioned previously. We are also trying to shake off the tech-stock correlation but that is for the future, now we are looking for a major market move so that we can increase our coin holdings.
"As of now, there are no signs of weakness from options markets, but as Ether options stand at $450 million, any number below $1.5 billion would certainly not look desirable for Bitcoin."
This is not financial advice and is only meant to show what I am up to, I am not a financial adviser
GT's
Old Man's Finanace
edit: this is the drop I was identifying and it took place shortly after I posted this first on Publish0x (looks like an old man might make some money here ;)
Very useful post