• Latest
Ethereum traders expect volatility ahead of Friday’s $820M options expiry

Ethereum traders expect volatility ahead of Friday’s $820M options expiry

August 26, 2021
ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
mintable launches industry changing gas free minting service on ethereum

Mintable Launches Industry Changing Gas Free Minting Service on Ethereum

May 1, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?

What is the future of Ethereum (ETH)?

April 22, 2022
green gaming

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Ethereum

Ethereum traders expect volatility ahead of Friday’s $820M options expiry

coinnewsdaily by coinnewsdaily
August 26, 2021
in Ethereum
0
Ethereum traders expect volatility ahead of Friday’s $820M options expiry
190
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

On Friday, August 27, the cryptocurrency Ether (ETH) will see a critical $820 million in monthly options expire. That will be the first time that options priced at $3,000 or above will have a realistic chance of being exercised, despite the fact that bulls appear to have wasted an excellent opportunity to dominate the expiry because they were overly bullish about Ether’s price potential.

We don’t know why $140 million of neutral to bull call options were placed between $3,800 and $8,000, but as the monthly expiration date approaches, these instruments will almost certainly become worthless.

Related articles

5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022

The success of interoperability-focused protocols and the level of competition have an impact on the price of Ether.

The Ethereum network has struggled as a result of its own popularity, which has repeatedly resulted in network congestion and transaction costs of up to $20 or more per transaction on average. Furthermore, the growth of nonfungible coins and decentralized finance has placed further strain on the network’s ability to function properly.

Perhaps some of the inflows that were expected to drive the price of Ether higher ended up going to its competitors, who have recently put in spectacular performances. For example, Cardano (ADA) has increased by more than 100 percent year-to-date as investors anticipate the introduction of its long-awaited smart contracts on September 12.

CoinShares’ “Digital Asset Fund Flows Weekly” report shows that Solana (SOL), a second smart contract challenger, received one-third of all inflows into crypto investment products during the last week, according to the report.

The success of bringing DeFi projects into its interoperability pool and developing a decentralized autonomous organization (DAO) to scale projects on the software development kits have also resulted in 150 percent improvements for layer-two scaling solutions such as Polygon (MATIC).

 

applications
Ether options aggregate open interest for Aug. 27. Source: Bybt.com

Notice how the $3,000 level has a disproportionately large presence in Friday’s expiry, with 30,900 ETH option contracts representing a total open interest of $100 million.

The initial call-to-put analysis reveals a small preference for the neutral-to-bullish call instruments, which have a 13 percent higher open interest than the neutral-to-bullish put instruments. Bears, on the other hand, appear to have been caught off guard, since 83 percent of their bets have been placed at $2,900 or less.

Bears must push the price of Ether below $2,900 in order to be successful.

Call options with expiration prices set at $3,500 or higher account for over half of all neutral-to-bullish call options. If the price of Ether falls below that level on Friday, these instruments will become worthless. The options expiry is scheduled for 8:00 a.m. UTC, so traders should expect considerable price volatility in the days leading up to the event.

The following are the three most likely scenarios that will most likely occur, as well as the predicted gross result for each of them. Be aware that some investors may be trading more complex strategies, such as market-neutral ones that employ calls and protective puts to safeguard their positions. This is due to the fact that this estimation is fairly crude.

The straightforward analysis compares the call (buy) options available at each strike level to the put (sell) options available at the same strike level. In the case of Ether, for example, if the cryptocurrency’s expiration price is $3,050, every neutral-to-bullish call option above $3,000 is rendered worthless.

– Below $2,900, there were 36,360 calls and 32,700 puts traded. The net result is nearly equal to the sum of the parts.
– Between $2,900 and $3,000, there were 36,770 calls and 20,320 put options traded. The final outcome is that the neutral-to-bullish instruments have a $48 million advantage in value.
– Between $3,000 and $3,200, there were 55,660 calls and 8,320 puts traded. The final conclusion is that the neutral-to-bullish instruments have a $147 million advantage over the other instruments.
– Above $3,200, there were 62,260 calls and only 1,490 puts. The final conclusion is that the neutral-to-bullish instruments have a $197 million advantage over the other instruments.

Bears will make every attempt to limit the damage, and fortunately for them, the honeypot for a positive price move does not appear to be worth the effort of bulls to dig up and exploit.

If you are an option trader who is overly optimistic, you should reconsider your strategy for the September expiration. Because of its expanding popularity, the Ethereum network appears to be its own worst enemy, as the emergence of competitors’ decentralized finance applications has spurred the rise of the network.

The thoughts and opinions stated in this article are solely those of the author and do not necessarily reflect those of Cointelegraph or its staff. Every investing and trading decision entails some level of risk. When making a decision, you should always conduct your own research first.

 

Tags: CoinSharesETHEtherEthereumethereum networkTrading
Share76Tweet48
Previous Post

The future for stablecoins like USDC

Next Post

Cancuns Luxurious Catamaran Charter Accepting Bitcoin to Binance Cryptocoins

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

5 projects enabling smart contract development on bitcoin
Alt Coin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
things you should know before investing in nfts
Alt Coin

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?
Bitcoin

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?
Alt Coin

What is the future of Ethereum (ETH)?

April 22, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum
Alt Coin

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
btc and eth will break all time highs in 2022 — celsius ceo
Bitcoin

BTC and ETH will break all-time highs in 2022 — Celsius CEO

April 21, 2022
Load More
Next Post
Cancuns Luxurious Catamaran Charter Accepting Bitcoin to Binance Cryptocoins

Cancuns Luxurious Catamaran Charter Accepting Bitcoin to Binance Cryptocoins

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch
  • Mintable Launches Industry Changing Gas Free Minting Service on Ethereum
  • 5 Projects Enabling Smart Contract Development on Bitcoin

Subscribe to Get More!

Loading
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$23,451.000.01%
  • ethereumEthereum(ETH)$1,678.411.09%
  • tetherTether(USDT)$1.00-0.13%
  • binancecoinBNB(BNB)$330.96-0.42%
  • rippleXRP(XRP)$0.4149741.31%
  • cardanoCardano(ADA)$0.404689-0.42%
  • dogecoinDogecoin(DOGE)$0.0979976.54%
  • matic-networkPolygon(MATIC)$1.284.02%
  • okbOKB(OKB)$41.620.78%
  • solanaSolana(SOL)$24.700.43%
  • shiba-inuShiba Inu(SHIB)$0.00001521.73%
  • polkadotPolkadot(DOT)$6.94-1.51%
  • litecoinLitecoin(LTC)$99.70-0.33%
  • tronTRON(TRX)$0.0643610.68%
  • daiDai(DAI)$1.000.09%
  • cosmosCosmos Hub(ATOM)$14.86-1.76%
  • chainlinkChainlink(LINK)$7.320.93%
  • ethereum-classicEthereum Classic(ETC)$24.184.00%
  • leo-tokenLEO Token(LEO)$3.431.81%
  • moneroMonero(XMR)$173.611.15%
  • bitcoin-cashBitcoin Cash(BCH)$139.720.97%
  • stellarStellar(XLM)$0.0939121.67%
  • filecoinFilecoin(FIL)$5.59-0.93%
  • crypto-com-chainCronos(CRO)$0.0838423.78%
  • algorandAlgorand(ALGO)$0.2703251.00%
  • vechainVeChain(VET)$0.0250201.40%
  • internet-computerInternet Computer(ICP)$5.901.03%
  • aaveAave(AAVE)$89.45-1.14%
  • eosEOS(EOS)$1.122.62%
  • elrond-erd-2MultiversX(EGLD)$46.932.69%
  • theta-tokenTheta Network(THETA)$1.120.89%
  • tezosTezos(XTZ)$1.183.46%
  • huobi-tokenHuobi(HT)$5.700.39%
  • paxos-standardPax Dollar(USDP)$1.000.15%
  • havvenSynthetix Network(SNX)$2.757.65%
  • bitcoin-cash-svBitcoin SV(BSV)$43.37-0.14%
  • pancakeswap-tokenPancakeSwap(CAKE)$4.543.88%
  • dashDash(DASH)$61.86-2.04%
  • iotaIOTA(MIOTA)$0.2451414.22%
  • makerMaker(MKR)$707.872.77%
  • neoNEO(NEO)$9.011.66%
  • zcashZcash(ZEC)$47.421.01%
  • zilliqaZilliqa(ZIL)$0.0303375.07%
  • basic-attention-tokenBasic Attention(BAT)$0.2810222.88%
  • compound-governance-tokenCompound(COMP)$54.370.05%
  • nemNEM(XEM)$0.0410773.16%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • kusamaKusama(KSM)$38.340.77%
  • bitcoin-goldBitcoin Gold(BTG)$17.692.76%
  • sushiSushi(SUSHI)$1.56-0.31%
  • qtumQtum(QTUM)$2.863.66%
  • wavesWaves(WAVES)$2.86-0.47%
  • golemGolem(GLM)$0.2673217.08%
  • yearn-financeyearn.finance(YFI)$7,901.620.70%
  • ftx-tokenFTX(FTT)$1.89-21.50%
  • omisegoOMG Network(OMG)$1.571.25%
  • ontologyOntology(ONT)$0.2269394.20%
  • digibyteDigiByte(DGB)$0.0112240.46%
  • umaUMA(UMA)$2.151.52%
  • ethlendAave [OLD](LEND)$0.53-3.08%
  • UniswapUniswap(UNI)$2.4438.80%