21,000 Bitcoin and 129,000 Ethereum options expired on May 22, carrying a combined notional value of roughly $1.9 billion. Greeks.live reported a put-call ratio of 0.66 for BTC with max pain at $78,500, and a 0.92 ratio for ETH with max pain at $2,200.
Bitcoin was trading near $77,500 at expiry, close to the BTC max pain level. Ethereum held around $2,130, lagging below its ETH max pain zone. The data reflects a market shifting toward defense after a six-week rally lost momentum.
Expiry Scale and Activity Cool Off
Less than 5% of Bitcoin's open options positions expired this week, while Ethereum's weekly settlement also accounted for about 5% of open interest, according to Greeks.live. ETH settlement volume was roughly half of the prior week's level.
With spot price near max pain, the gamma and pin effect became more visible. Traders watched whether Bitcoin could defend the $78,500 area before settlement, and whether Ethereum could reclaim the $2,200 strike.
The firm added that the short-lived rise in Ethereum options share this month has ended. Implied volatility is likely to decline after settlement, signaling caution rather than a confirmed directional move.
Implied Volatility Declines, Whales Build Defenses
Implied volatility dropped across major tenors. Bitcoin's IV fell below 35%, Ethereum's below 50%, with short-term levels expected to contract further. Deribit reported $31.3 billion in Bitcoin options open interest on May 21, while a larger $6.25 billion expiry looms on May 29 with max pain at $75,000.
Structured trades continue to lead volume, while large holders build low-cost protection. Greeks.live said volatility expectations remain low and market enthusiasm is weaker than anticipated. The next focus is whether Bitcoin can hold current support or drift toward lower option strikes.
Earlier coverage showed a similar cooling pattern: around 25,000 Bitcoin options worth over $2 billion expired on May 15, with traders watching downside risk despite a lower put-call ratio. Options markets appear to be transitioning from speculative bets to systematic hedging.