On Nov. 13, a total of $525 million in Bitcoin (BTC) options open interest is set to expire. This is similar to last week when $470 million in options open interest also expired. This presents somewhat unusual activity as most volume goes through monthly and quarterly options.
On Nov. 5 (last Friday), put (sell) options open interest was 30% larger than call (buy) ones. Deribit exchange holds $431 million open interest for this Friday’s expiry and Bit.com has $72 million.
Before coming to quick conclusions on whether this figure is bullish or bearish, it’s important to take a more detailed view in order to gauge the potential buy and sell pressure near expiry.
For example, an $18,000 call option holder has not much gain in pushing up the Bitcoin price to $16,500 with less than 32 hours till expiry. These options are already deemed worthless by the market. The same can be said for a put (sell) option down to $14,000.
Thus, by excluding call options above $16,700 and put options below $14,400, traders can have attain a more realistic view of the current market conditions. Read from source….