Bitcoin Options Report | October 5, 2021

BTC Options Trading Report | Tuesday, October 5, 2021

HXRO Labs – US residents | Hxro Trade – International 

Key Headlines

Key Takeaways

Since last Thursday, DeFi options markets have seen an uptick of options volume and some interesting trades in the Bitcoin December $80,000 calls and November $70,000 calls. Today, the largest trade so far has been a buyer of 200 November $70,000 calls for a total premium outlay of $404,666. This is one of the larger trades we have seen in the past few weeks and the tone of options trading has quickly appeared more bullish. 

As Bitcoin flirts around the $50,000 level, it will not be surprising to see more strength in price and options volume. So far today, we have seen $772 million of options premium trade, up about $200 million from the last report. Implied volatility is slightly higher and the most activity has been call buyers with 4,832 call contracts bought in the past 24 hours. The put/call ratio for volume traded is .689 with 59.2% calls and 40.8% puts. 

Looking at the total bitcoin options open interest, there are twice as many calls outstanding as puts. December’s expiration holds the majority of open interest, and the $200,000 calls are the largest positions, with 5,240 contracts outstanding followed by the December $100,000 calls with 4,970 contracts open. Long-term things look very bullish in option markets with the caveat that there is still some downside pin risk in October contracts leading into the monthly expiration. 

As Meltem said last week on CNBC, it would not be surprising to see Bitcoin print $100,000 by the end of the year, especially looking at how options have been trading the past few weeks and recent chatter about a futures-based Bitcoin ETF. Also, this comment from Bank of America certainly helps – “[Crypto] is a trend that has barely started — money is the easiest application and the Bitcoin use case started there.”

Bitcoin Options Volume

In total, during the last 24 hour period, crypto traders and hedgers have sold more crypto option contracts than they have bought. Premium sellers totaled 8211 contracts sold versus 7294 bought. Call buyers have the most volume, with 4832 contracts bought versus 4643 calls sold. Bitcoin puts bought totaled 2461 contracts versus 3568 puts sold.

For the October 6th Bitcoin options expiration, the 48,000 puts still have the highest open interest with 248 contracts outstanding followed by the 52,000 calls with 196 contracts outstanding.

For the October 7th Bitcoin options expiration, the 49,000 puts have the highest open interest with 165 contracts outstanding followed by the 48,000 puts with 47 contracts outstanding.

For the October 8th Bitcoin options expiration, the 38,000 puts still have the highest open interest with 961 contracts outstanding, followed by the 50,000 calls with 941 contracts outstanding.

For the October 15th Bitcoin options expiration, the 50,000 calls have the highest open interest with 628 contracts outstanding, followed by the 52,000 calls with 561 outstanding.

For the October 22nd Bitcoin options expiration, the 54,000 calls have the highest open interest with 576 contracts outstanding, followed by the 55,000 calls with 500 contracts outstanding.

For the October 29th Bitcoin options expiration, the 60,000 calls have the highest open interest with 3455 contracts outstanding, followed by the 100,000 calls with 3001 contracts outstanding.

For the November 26th Bitcoin options expiration, the 70,000 calls have the highest open interest with 2456 contracts outstanding (1k has been added since last Thursday) followed by the 100,000 calls with 1342 contracts outstanding. 

For the December 31st Bitcoin options expiration, the 200,000 calls have the highest open interest with 5236 contracts outstanding, followed by the 100,000 calls with 4962 contracts outstanding.

For the March 25th Bitcoin options expiration, the 100,000 calls have the highest open interest with 1492 contracts outstanding, followed by the 50,000 calls with 1098 contracts outstanding.

For the June 24th Bitcoin options expiration, the 100,000 calls have the highest open interest with 1004 contracts outstanding, followed by the 20,000 puts with 689 contracts outstanding.

For the Sep 30th, 2022 Bitcoin options expiration, the 250,000 calls have the highest open interest with 911 contracts outstanding, followed by the 70,000 calls with 432 contracts outstanding.

Top Block Trades by Premium Size – October 5, 2021

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Disclaimer:

This commentary is provided as general information only and is in no way intended as investment advice, investment research, a research report, or a recommendation. Any decision to invest or take any other action with respect to the digital assets and/or securities discussed in this commentary may involve risks not discussed herein, and such decisions should not be based solely on the information contained in this report. Option data generated from Gvol, crypto traders, and trades on Deribit. Past performance is not indicative of future results.

©2021 Hxro Labs

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