Mass expiration of options: 143,000 BTC contracts reach their expiration with volatility at annual highs

MagicBean · 2026-01-12T08:20:12+00:00

Derivatives markets face a key event with the expiration of 143,000 Bitcoin options contracts and 572,000 Ethereum options contracts, raising concerns about volatility and trading strategies in uncertain conditions.

MagicBean

2026-01-12 08:20:12

Abstract generation in progress

Derivatives markets are preparing for a significant event as 143,000 Bitcoin option contracts expire, representing a notional value of $13.0 billion. Metrics reveal a Put Call Ratio of 0.51, placing the maximum pain point at $98,000.

Detailed settlement data

Meanwhile, 572,000 Ethereum option contracts are also reaching expiration, with a notional value of $1.71 billion. The Put Call Ratio for ETH stands at 0.48, while its maximum pain point is at $3,400.

Market analysts have documented a notable increase in implied volatility compared to the previous month. The average IV for major BTC expirations remains around 45%, while for Ethereum it is below 70%. Both levels are considered relatively high within the current annual context.

Market behavior and trading dynamics

Institutional operations show different characteristics between the two assets. Wholesale trading volume in Bitcoin experiences a significant increase with a growing proportion of options trades, mainly driven by position adjustments. In contrast, wholesale trading activity in Ethereum remains contained, reflecting divergent market dynamics.

Perspective and recommendations

The outlook for the fourth quarter presents historic challenges for traders. Macroeconomic uncertainty has caused considerable fragmentation in market perceptions, resulting in divergent positions among participants. Under these conditions of high volatility and uncertain fundamentals, traders should avoid leveraged strategies that amplify risk exposure.

BTC1,63%

ETH0,67%

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