"Options expiry creates volatility as traders lock profits, cut losses and reposition around large BTC and ETH contracts. Put-call ratios signal sentiment: Above 1 shows a bearish outlook, while below 1 points to bullish expectations. Max Pain theory suggests expiry prices gravitate to where the most contracts expire worthless, amplifying potential manipulation risks.Understanding expiry helps traders track key metrics, anticipate volatility and manage risk more effectively during these periods."
"expiries. When large volumes of these derivative options contracts approach their expiry date, it sends ripples through the crypto markets. Understand this, and you'll know when prices are more likely to move sharply. 1. What are option expiries in Bitcoin and Ether? To understand option expiries, you first need to understand the fundamental concept of an option. It's a more complicated trading method than spot trading. Options are contracts that give the holders"
Options expiries occur when derivative contracts for BTC and ETH reach their settlement date, creating concentrated trading activity. As expiries approach, option prices and implied volatility often increase and large expiries can send ripples into spot markets, causing sharp underlying price moves. Call options grant the right to buy; put options grant the right to sell. The put-call ratio measures market sentiment—ratios above 1 signal bearish expectations, below 1 signal bullishness. Max Pain theory posits that expiry prices tend toward levels that render the most options worthless, which can amplify manipulation risks. Tracking expiries helps traders anticipate volatility and manage risk.
Read at cointelegraph.com
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