Crypto Traders Brace for Nearly $5B Bitcoin and Ether Options Expiry

The chart of the day is brought to you by crypto dot com. The world's fastest growing crypto app. Let's take a look at the chart of the day on Friday. A total of 1.217 million. Bitcoin and Ether options contracts with the notional value of $4.8 billion will expire on crypto options exchange. There a bit options are derivatives that give the purchaser the right to buy or sell the underlying asset at a predetermined price at a later date. These derivative contracts will be valuable or worthless depending on how the top two crypto currencies trade by the end of the week. Meanwhile, the max paying for Bitcoin and Ether. September expiry options are $26,500.16 50 respectively. Max Payne is the level where options buyers stand to lose the most money on expiration. The theory is that writers or sellers of options look to keep prices pinned near the max pain point while heading into the expiry to inflict maximum pain on buyers. They do so by purchasing and selling the underlying asset in the spot futures markets. Bitcoin is currently trading around 26.1 k. While Ether is around $1.6000 traders expect prices to remain stable ahead of the expiry. That's it for today's chart of the day. I'm Jen Senai. We'll see you next time to unpack more of the data behind top news stories.