Bitcoin options worth $5.5 billion in notional value are set to expire on Friday, threatening a drop to the maximum pain price of $44,000.
Quarterly and monthly Bitcoin options, primarily traded on Derebit, will expire on Friday, Mar. 26. Those contracts have an Open Interest volume of $5.5 billion and strike prices between $4,000 and $120,000
Options contracts buyers purchase call or put options from sellers by paying a premium, thereby limiting their downside risk while allowing for maximum appreciation. Sellers are liable to buyers’ financial gains, while they also retain the entire premium in case of adverse price movements for buyers.
