Bitcoin and Ether have seen modest gains in the past 24 hours, but their prices remain below levels that would cause "maximum pain" for buyers of August expiry option contracts. Deribit, the world's leading crypto options exchange, will settle 72,000 BTC August options contracts worth $1.9 billion and 535,000 ETH options contracts valued at $893 million on Friday.
The max pain levels for BTC and ETH settlements are currently at $28,000 and $1,800, respectively. The popular theory is that writers or sellers of call options and put options often try to push the underlying asset's spot price towards the max pain level to make their counterparties, the options buyers, suffer the most.
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