After reviewing the Ether (ETH) options for June 25th, one might think that traders got overly bullish or ultra-bearish. There are currently big bets on prices below that 1,000 USD, while others point it out $ 3,800 and more.
A recent report from Coinshares shows that several crypto funds have seen net inflows after record outflows lasting for weeks. The report finds that Ether vehicles recorded a total of $ 47 million in entries, increasing their market dominance to 27%.
DeFi growth supports rising ether prices
Another positive factor is that DeFi protocols have a Total Locked Value (TVL) of $ 48 billion, although the sector suffered a significant slump following the recent drop in the price of ether.
The 57% increase over the past three months should please even the most optimistic investors, but crypto traders are exaggerating every situation that has occurred in the past few weeks. When Ether fell from its all-time high of $ 4,380 on May 12, traders quickly put protective put options up to $ 400.
On the other hand, the long-awaited transition to a proof-of-stakes consensus model could be the root of positive expectations. The improvement proposal EIP-1559, which is set for the next month, is another important step, and some traders have price targets between $ 4,000 and $ 10,000.
Currently there 623,800 ether options contracts expiring June 25 with an outstanding interest of $ 1.75 billion. Neutral to bullish call options are currently 29% more represented, although this buy-sell ratio uses an equal weight for each exercise price (exercise price) regardless of its probabilities.
The bears spent over a million dollars opening their positions
Ultra-bearish put options at USD 1,600 and below amount to 170,000 ether contracts for an open interest of USD 476 million. However, given that June 25th has about three weeks to go, these contracts are trading below $ 32. The market value of these bearish options is options $ 1.2 million.
On the flip side, the bulls have likely exaggerated by buying call options starting at $ 3,800. These 160,000 ether contracts represent an open interest of USD 450 million, but taking into account that its current face value is below the USD 80. its market value is $ 5 million.
Therefore, the bulls spent more money opening their positions despite similar open interests on both sides.
These out of the money options are a great way for option marketers to collect the premium in advance. The same method can be applied to put options of $ 2,100 and call options of $ 3,800.
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