On May 7, a total of $ 470 million in Ethereum options will expire. In a way, Ethereum bulls control 100% of options expiration.
Specifically, Ethereum’s rise to $ 3,300 has rendered all bearish put options worthless before the expiration of $ 470 million this Friday.
That is to say, each of the put option contracts will cease to have value. If Ethereum manages to stay above $ 3,100 until Friday morning.
Sure enough, Ethereum’s growth has been driven by the development of decentralized finance (DeFi).
In this regard, Yat Siu, president and co-founder of Animoca Brands, said: «DeFi will shape finance in incredibly fundamental ways. Perhaps the most important form (even in China) is financial education».
In addition, he added: «Imagine a world where financial inclusion isn’t just about having a bank account. If not to be able to participate easily and effectively in various capital opportunities».
Similarly, Da Hongfei, founder of Neo and CEO of Onchain, said: «The current DeFi boom has shown that Blockchain technology is here to stay».
As for the options expiration on May 7, the bear-neutral put options currently carry interest of $ 250 million. But, they tend to lose value as settlement day approaches.
All things considered, Ethereum’s 55% rally in the past 30 days surprised the bears. Since the protective positions were mainly focused on $ 2,800 and below.
Bulls, on the other hand, are generally very optimistic. The purchase option contracts have an open participation of 66,350, equivalent to $ 220 million.
However, the bulls have incentives to positively push the price as Friday’s deadline approaches.
As the table shows, ETH put options of $ 2,450 and Strike Bottom are offered below $ 10 each.
In the meantime, some of them are not holding any offers and therefore for Ethereum bears it makes sense to throw in the towel for this week’s expiration. Instead of wasting resources collecting bad bets.
To conclude, the growth of decentralized applications, transfers, and daily transactions on the Ethereum network should propel the Ether bulls to target even higher for the month-end expiration.
Very important, this article is informative in origin and does not represent any investment recommendation. Always do your own research.
I retire with this phrase from Changpeng Zhao: «There are always more people who have a herd mentality than those who actually do serious research.».