Ethereum Set to Have the Largest Ever Options Expiry on June 25, 2021
Today, we will be discussing the Ethereum options expiry that is set to happen on June 25, 2021.
What are Options?
Options give buyers the right to buy or sell an underlying asset (Ethereum) at an agreed-upon price and date.
The June expiry holds more than 638,000 Ether contracts. This is equivalent to roughly 45% of Ether’s total of $3.4 billion outstanding options.
Call options allow Ethereum buyers to acquire tokens at a fixed price on the expiry date. On the other hand, put options allow Ethereum holders to sell their tokens on the expiry date.
According to CoinTelegraph, there is a “disproportionate amount” of call options at and above $2,200.
What does this mean?
If Ether closes below $2,200, 73% of those call options will be worthless because investors would not buy the option at a higher price than the current market value of Ether.
What about the put options?
Most of the protective put options have been opened at or below $2,100.
If Ether closes above $2,100, 74% of these options will become worthless because investors would be making a loss if they sell the option at a lower price than the current market value.
At the time of writing, Ethereum is priced at $1,861.83.
Cointelegraph https://cointelegraph.com/news/ethereum-s-1-5b-options-expiry-on-june-25-will-be-a-make-or-break-moment
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