According to data from major exchanges, including Deribit, monitored by Swiss derivatives analytics firm Laevitas, open interest, or the amount of options contracts traded but not squared off with an offsetting position, stands at a new lifetime peak of close to 4 million. The second quarter saw the previous peak, which was somewhere about 3.5 million.
Since Ethereum developer Tim Beiko suggested September 19 as a possible date for the merger’s conclusion, the ether market has been more upbeat. At the time of publication, the price of ether was $1,620, an increase of 50% for the month.
Due to increased demand for call options as a result of an expanded time frame for Ethereum’s long-awaited, allegedly bullish “merge,” the number of open positions in the ether (ETH) options market has increased to a record high.
The tremendous demand has increased September volumes to 100%, the trading firm stated, adding that “we expect this demand will continue as we approach the merge in September.” A few hedge fund names have been significant buyers of the ETH calls. for dialling choices.
Calls are once again in demand as evidenced by the recent substantial narrowing of the spread between the prices paid for puts and calls.
A call option is a financial contract in which the buyer has the right but not an obligation to buy the underlying asset at a predetermined price on or before a specific date. On the other hand, the holder of a put option has the right but not an obligation to sell the underlying asset at a predetermined price on or before a specific date.
The upgrade would, as the name implies, combine Ethereum’s current proof-of-work blockchain with the Beacon Chain, a proof-of-stake blockchain that has been operational since 2020. The change is seen as positive for ether.
There are significant participants betting on an ether price increase for the September and December expiry, according to Pulsar Trading Capital options dealer Martin Cheung.
The founder of the Crypto Pragmatist newsletter, Jack Niewold, stated in the edition published on Wednesday that they are huge supporters of Ethereum as an asset. They have recently been optimistic about the possibility that the merger will boost prices after exerting significant deflationary pressure (in the form of structural demand)