Cryptomarket grits teeth before Bitcoin and Ethereum options deadline

The crypto market is gearing up for a busy Friday as Bitcoin and Ethereum options are about to expire. According to data from Greeks.live, there are 25,000 Bitcoin worth of options with a put-call ratio of 0.7 and a “maximum pain threshold” of $29,000.

What is the maximum pain threshold?

The “maximum pain threshold” is a term often used in the options market and refers to the point at which option holders will feel the most pain. This limit is calculated by looking at the total value of all options outstanding on a given underlying asset and then determining which price causes the least value reduction for all option holders.

In other words, the “maximum pain threshold” is the point at which the majority of options will expire worthless, causing maximum pain for the option holders. This point can change from day to day depending on the movements of the underlying asset and the strike prices of the outstanding options.

The concept of the “maximum pain threshold” can be useful for traders trying to anticipate the price movements of the underlying asset, as it can help determine possible levels of support or resistance. In this case, the focus for Bitcoin is therefore on the $ 29,000.

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How is Ethereum doing?

As for Ethereum, 217,000 Ethereum worth of options expire today with a put-call ratio of 0.83 and a maximum pain threshold of $1,950. Basically, a put-call ratio of less than 1.00 means that more people have bet on a fall than on an increase.

We speak of a put when people buy an option that takes a profit if the asset in question falls. In that respect, Ethereum at the price of $ 1,950 reaches the maximum pain for people who have bet on a fall in the price.

We usually see that the price can become a bit volatile in the run-up to the expiration of a huge amount of options. That is because traders try to play and hurt each other around these boundaries.

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