100 billion USD BTC Options are about to expire, with 95,000 to 105,000 USD as the key range.

Gate News bot message, Bitcoin Options with a notional value exceeding 10 billion USD will expire on this Friday at 08:00 UTC on Deribit, with a maximum pain point of 100,000 USD. The range between 95,000 USD and 105,000 USD has become a key area for potential fluctuation and directional clues.

As of the time of writing, a total of 93,131 Bitcoin monthly Options contracts have expired, of which 53% are call options and the rest are put options. In Deribit, one Options contract represents one Bitcoin (BTC).

The distribution of open contracts is as follows: a large amount of "delta" exposure is concentrated at the strike prices of $95,000, $100,000, and $105,000. This means that traders holding positions at these strike prices have significant net directional risk regarding the price of Bitcoin.

Gamma measures the sensitivity of options to changes in the price of Bitcoin, and its peak will reach a maximum as the expiration date approaches. Therefore, price fluctuations may trigger widespread hedging by investors and market makers (who often trade in the opposite direction of investors), further exacerbating price fluctuations.

"The largest concentration of Derma value is the Deribit BTC option expiring on May 30, which has a delta exposure of up to $2.8 billion, with strikes of $100,000, $105,000 and $95,000, respectively, which has the potential to form a strong gamma-driven flow by the end of the month," Volmex, a decentralized cryptocurrency trading platform, explained on the X platform. ”

In addition, Deribit's DVOL index (representing the 30-day implied or expected volatility based on options) continues to decline, indicating that the market has little concern about the volatility brought by the options that are about to expire.

The annualized daily implied volatility index of Volmex slightly increased to 45.4%, which means the price fluctuation rate over 24 hours is 2.37%.

Source: CoinDesk