Record High Number of Options Expire Today! While crypto media is warning everyone of high volatility, most full-time option traders seem to think it’s exaggerated. Yes, aggregate open interest for both BTC and ETH are on the rise, but for expiration we should actually focus on the number of contracts that have strikes close to current market levels.
n Deribit’s case, this is just ~6k contracts, worth roughly $55m. Because the notional is relatively small compared to futures, it’s much less likely for whales to squeeze or manipulate. The remainder of contracts are likely to be rolled over with limited market impact.
Last week we talked about the DeFi boom and the momentum continues. COMP is maintaining a mkt cap of ~$2.4b, while the new kid on the block is BAL, Balancer’s governance token. Regardless of what Balancer is actually useful for, simply put, users can stake certain tokens via smart contracts and mine BAL. Some of these pools offer >100% APY if you include the mined tokens. Again, we need to be wary of whether these returns are sustainable as it highly depends on BAL token price.
In other news:
- ETH miners have agreed to raise gas limits by 25%. Should increase network’s TPS.
- Grayscale’s ETH product dumps as lockup ends. Premium is still >300%.
- Paypal rumoured to be preparing direct crypto purchases for its users.
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Markets rejoiced this week on the news of a COVID vaccine from Pfizer. Interesting to see BTC initially correct (along with XAU) but once again