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November 4th open interest in Bitcoin options has reached a new all-time high. When that happened, an even more curious case emerged. A total of $ 470 million in open interest will expire on November 6. This is quite unusual, as liquidity tends to focus on a monthly and quarterly basis.
At the moment, Deribit holds 75% of the open interest, followed by Bit.com with 13%. Interestingly, on both exchanges, put options account for 65% of the outstanding notional. This relationship is the exact opposite of the aggregate Bitcoin (BTC) options market for the remaining dates, which favors call options by a large margin.
With a closer look, 6,050 BTC in calling options range from $ 13,500 to $ 14,750. Bit.com adds 1,130 BTC and OKEx another 430 BTC. Therefore, there is an immediate open interest of $ 114 million to support current levels.
Meanwhile, put options between $ 13,250 and $ 14,750 totaled 4,700 BTC on Deribit, followed by 1,320 BTC on Bit.com and OKEx with 480 BTC. Therefore, theThe immediate pressure on the sell side amounts to $ 98 million in open interest on put options.
In reality, most put options have been written down and are no longer worth anything on the market. With less than 16 hours before the deadline, the right to sell BTC at $ 12,500 and below this level no longer have any value. This excludes 60% of the $ 300 million open interest from put options.
Therefore, when we only look at the prices of options closest to market levels, we can see a small $ 16 million imbalance that favors buying. There appears to have been some large bearish trade meticulously prepared for the US election, which negatively impacted the price.
Fortunately for buyers, the opposite movement appears to be taking place, causing short-term bearish options to devalue.
The views and opinions expressed herein are solely those of carr and do not necessarily reflect the views of Cointelegraph. Every investment and trade move carries risk, you need to do your research when making a decision.
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