Bitcoin options expiry worth $1.5B sets $69K max pain price

Apr 12, 2024

Observations & Insight

Cboe’s David Howson Talks Product Innovation and International Expansion at FIA Boca Conference
JohnLothianNews.com

David Howson, Global President of Cboe Global Markets, spoke with John Lothian News in a video from FIA Boca 2024 as part of our Industry Leaders series sponsored by Wedbush. He shared Cboe’s global vision for 2024, saying the exchange is at an “inflection point” in its growth and is building out its global securities and derivatives network. “Last year we migrated Australia and Japan on to Cboe’s uniform technology platform,” he said.

Watch the video »

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Volatility Insight of the Week: CME Group’s volatility index indicates Soybean Oil Skew Ratio is reaching a 3-month high. To learn more about CME Group’s Volatility Index, please visit here

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Lead Stories

Bitcoin options expiry worth $1.5B sets $69K max pain price
Zoltan Vardai – CoinTelegraph
Over $1.5 billion worth of Bitcoin futures options are set to expire on April 12, signaling potential downside price volatility that could see Bitcoin fall to the $69,000 mark.
The over $1.5 billion worth of Bitcoin options are due with a put-to-call ratio of 0.62, suggesting a “max pain” point of $69,000 for Bitcoin, according to an April 12 X post by pseudonymous trader Greeks.
/jlne.ws/4aIL5lE

Bitcoin derivatives metrics suggest $70K is here to stay
Marcel Pechman – CoinTelegraph
Since March 25, Bitcoin has struggled to maintain its value above the $71,000 mark, a trend that some may view as a sign of bearish momentum. Nevertheless, insights from the BTC derivatives market reveal a more stable environment, as the previous atmosphere of rampant optimism has notably subsided.
/jlne.ws/4cSihZM

VIX Rockets 25% On Most Volatile Session In 2 Years; Oil Rises As Israel Braces For Iranian Attack: What’s Driving Markets Friday?
Benzinga via Business Insider
In a week already ablaze with market fervor sparked by inflation data surpassing expectations and prompting a jolting reassessment of Federal Reserve rate cut projections, Friday witnesses heightened volatility, fueled by escalating geopolitical tensions in the Middle East.
Israel is bracing for an attack from Iran, which could occur within the next 48 hours or even earlier, according to various media sources.
/jlne.ws/4aSvz6F

Fed might not be the first major central bank to cut rates. Does that matter for stocks?
Joy Wiltermuth – MarketWatch
U.S. stocks could still benefit from interest-rate cuts by a foreign central bank, according to Ned Davis Research.
With sticky inflation data raising doubts about the Federal Reserve’s ability to cut interest rates this year, foreign central banks might act sooner to ease their own monetary policies — and U.S. stocks could still benefit.
It would be atypical, as the Fed has led most easing cycles since the 1980s. And the rally in U.S. stocks since October has been fueled in part by optimism around Fed rate cuts and falling inflation.
/jlne.ws/4awPEzM

Should UK investors have easier access to crypto? Despite government pledges to make Britain a leader in digital assets, retail investors remain without regulated options
Scott Chipolina – Financial Times
Cryptocurrency investors and firms in the UK are expressing frustration at being left behind their US counterparts, after US regulators approved several mainstream products that have made it easier than ever for the investing public to buy bitcoin.
/jlne.ws/3JgEtzi

Exchanges

Crypto Derivatives Exchange Stream Trading Raises $1.5M in Seed Funding
Danny Nelson – Bloomberg
The company building Stream Finance, one of the Ethereum blockchain’s newest crypto derivatives platforms, has raised $1.5 million from Polychain and a handful of angel investors. Stream Trading raised its seed round at a $20 million valuation, founder Diogenes Casares said in an interview with CoinDesk. He and co-founder Solal Afota built the team quickly to capitalize on this year’s crypto bull market, which is paying fat dividends for trading platforms across decentralized finance (DeFi).
/jlne.ws/4ayZrFE

SGX Group reports market statistics for March 2024
SGX Group
Record commodity, FX derivatives activity in March caps strong first quarter; Retail net buying increases across all stock segments. Singapore Exchange (SGX Group) today released its market statistics for March 2024. Record trading activity in commodity and foreign exchange (FX) derivatives during the month drove volumes for the quarter, while retail net buying increased across all stock segments. Derivatives traded volume rose 10% month-on-month (m-o-m) in March to 24 million contracts. For the January-to-March quarter, volume climbed to 70.4 million contracts, 12% higher over the same period last year. Daily average volume (DAV) for the quarter gained 14% year-on-year (y-o-y) to 1.2 million contracts. The average fee per contract for equity, currency and commodity derivatives for January-to-March was S$1.54.
/jlne.ws/3VV6nrU

Strategy

Next Week
Cboe (Video)
In #Vol411, Dan Deming @Djd551 covers dynamics in the volatility complex – nearer term $VIX #futures trading below current #VIX Index levels, active strikes in VIX #options expiring next Wednesday, and data & events to keep an eye on next week.

Education

How to Read an Option Chain for Beginners
Paul Kim – Business Insider
An option chain, also known as an options matrix, displays all the option contracts that are available for a specific security, which is known as the underlying asset. Usually shown in a table format, option chains also contain information about the given security, such as asks and bids and the volume of options being traded at the moment. This information is constantly changing moment to moment with the market.
/jlne.ws/3kZHiID

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