Ethereum price lingers at key resistance days before $112M options expiry

[syedrasool2011]

$112 million in Ethereum options expire on August 28 but data shows traders remain bullish even as ETH trades below $400


Ether (ETH) options contracts have grown five-fold in the past three months to currently sit at $452 million.

The $112 million set to expire this Friday could have a considerable market impact, although that will depend on the balance between bullish and bearish strategies.



Ether options total open interest. Source: Skew

The above chart shows just how strong the ETH options market has been in the past month.

Although its open interest might seem modest compared to Bitcoin’s (BTC) $1.9 billion options market, ETH options have become more relevant over the past couple of months.

$400 strike dominates volumes
Not every options market strategy is bullish or bearish. The covered call consists of buying the underlying asset while selling a call (buy) option.

The goal here is to profit from a fixed income strategy whenever there is a decent enough premium. Overall, this is a neutral-to-positive strategy, and these investors will profit as long as Ether remains above a certain threshold.

More Details:https://cointelegraph.com/news/ethereum-price-lingers-at-key-resistance-days-before-112m-options-expiry