Future

2024

Bitcoin

Crypto options exchange Deribit is poised for a record-breaking week with over $15 billion in options set to expire for Bitcoin and Ethereum. 
The statement highlighted that “over USD 15 billion in options notional open interest (OI) will expire this week,” marking a historic event in Deribit’s operational history. This Friday is poised to witness one of the platform’s largest expirations of <a href="https://crypto.news/tag/options/" data-type="link" data-id="https://crypto.news/tag/options/">options</a> contracts. 
The expiration includes $9.5 billion in <a href="https://crypto.news/price/bitcoin/" data-type="link" data-id="https://crypto.news/price/bitcoin/">BTC</a> options open interest out of $26.3 billion and $5.7 billion in <a href="https://crypto.news/price/ethereum/" data-type="link" data-id="https://crypto.news/price/ethereum/">ETH</a> options open interest out of $13.2 billion, accounting for 40% and 43% of the total OI, respectively. 
Further details provided by Deribit reveal the impact of current market conditions on these expirations. 
“For BTC options, at a price level of [$70,000], USD 3.9 billion will expire in the money. Similarly, for ETH options, USD 2.6 billion will expire in the money,” Derebit <a href="https://metrics.deribit.com/futures/BTC" data-type="link" data-id="https://metrics.deribit.com/futures/BTC" target="_blank" rel="noopener">explained</a>. 
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 Huge upcoming options expiry (USD 15bn) 🚀🚀🚀 In total over USD 15 billion in options notional OI will expire this week; This Friday marks one of the biggest expiries in Deribit's history as USD 9.5 billion BTC options open interest out of USD 26.3 billion will expire (40%)… <a href="https://t.co/1no1Q4SwJT" target="_blank">pic.twitter.com/1no1Q4SwJT</a>— Deribit (@DeribitExchange) <a href="https://twitter.com/DeribitExchange/status/1772989322528010369?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">March 27, 2024</a>
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The figures are considerably higher than typical, attributed to the recent <a href="https://crypto.news/bitcoin-investors-selling-price-rally/" data-type="link" data-id="https://crypto.news/bitcoin-investors-selling-price-rally/">price rally</a> in both cryptocurrencies. This is expected to induce upward pressure or volatility on the underlying assets due to the higher in-the-money (ITM) expiries and the diminishing influence of the lower max pain levels. 
Analyzing the <a href="https://crypto.news/markets/" data-type="link" data-id="https://crypto.news/markets/">market’s volatility</a> aspect, Deribit notes a contango in the volatility surface for both BTC and ETH. Current implied volatility (IV) levels for March 29 options stand at 63% and 67%, respectively, anticipating reaching a healthier 80% further along the curve. The observation suggests market participants do not foresee significant price fluctuations until expiration. 
“$465 million in BTC March Future plus $230 million in the March ETH future will expire,” Derebit additionally disclosed, totaling approximately $695 million of the $1.9 billion currently outstanding. 
The platform also highlighted the current open interest in its dated futures, stating that the current OI in their dated futures of $1.9 billion is the highest OI number of any crypto market, driven by an annualized basis of about 15% – 20%. 
The high level of interest is caused by the significant returns generated, sparking considerable anticipation for substantial trading activity around the expiry period. 
 Read more: <a href="https://crypto.news/demand-for-bitcoin-options-contracts-surges-as-investors-seek-risk-defined-exposure-glassnode/"> Demand for bitcoin options contracts surges as investors seek risk-defined exposure: Glassnode </a>

Deribit anticipates $15b in crypto options to expire this week

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