Bitcoin (BTC) options worth $6.4 billion on the crypto derivatives exchange Deribit are set to expire on Friday at 08:00 UTC.
On Aug. 28, a total of 81,700 Bitcoin options—44,639 call and 37,061 put contracts—worth approximately $6.44 billion in notional value will expire, according to Deribit Metrics
As the put-to-call ratio is 0.83, it translates to bullish positioning in the market. Understanding Bitcoin options expiry An option is a contract that gives a trader the right, but not the obligation, to buy or sell Bitcoin at a predetermined price called the strike price. While the call option gives traders the right to buy Bitcoin at the strike price, the put option gives them the right to sell BTC at the strike price.
Suppose a trader has a call option with a strike price of $65,000 and an upfront premium of $2,000, which will expire on Aug. 28. If Bitcoin is trading at $70,000 that day, the trader can buy it for $65,000. While one Bitcoin cost everyone $70,000, the options trader eventually paid only $67,000 for it.