On May 7, a total of $ 470 million in Ethereum options will expire. In a way, Ethereum bullies control 100% of options expiration.

Specifically, Ethereum’s rise to $ 3,300 has made all bearish sell options worthless before the $ 470 million expiration this Friday.

That is, each of the put contracts will cease to have value. If Ethereum manages to stay above $ 3,100 until Friday morning.

Ethereum growth

Indeed, 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».

Likewise, Da Hongfei, founder of Neo and CEO of Onchain, said: “The current DeFi boom has shown that Blockchain technology is here to stay».

Option expiration

As for the maturity of the May 7 options, bearish-neutral put options currently have an interest of $ 250 million. But, they tend to lose value as settlement day approaches.

Strike expiration of Ethereum added options on May 7. Source: BYBT
Strike expiration of Ethereum added options on May 7. Source: BYBT

At the end of the day, Ethereum’s 55% rebound over the past 30 days surprised the bears. Since the protective positions were mainly focused on $ 2,800 and less.

On the other hand, the bulls, are generally very optimistic. The call option contracts have an open stake of 66,350, equivalent to $ 220 million.

However, the bulls have incentives to positively pressure the price as the Friday deadline approaches.

Ethereum put option prices for May 7. Source: Deribit
Ethereum put option prices for May 7. Source: Deribit

As the table shows, the $ 2,450 ETH sell and lower strike options are offered below $ 10 each.

Meanwhile, some of them don’t have any offers and therefore for Ethereum bearers, it makes sense to throw in the towel for this week’s expiry. Instead of wasting resources on collecting bad bets.

Finally, the growth of decentralized applications, transfers and daily transactions on the Ethereum network should propel the Ether bullish to target even higher for month-end expiration.

Very important, this article is of informative origin and does not represent any investment recommendation. Always do your own research.

I retire with this phrase from Changpeng Zhao: “There are always a greater number of people who have a herd mentality, than those who actually do serious research».