A massive $7.5 billion in Bitcoin and Ethereum options contracts expire today, May 29, with both assets trading below their respective max pain levels after a rough week. Bitcoin, with $6.2 billion in notional open interest, sits at around $73,350 — below its $75,000 max pain — while Ethereum's $1.29 billion in contracts face a $2,200 pain point against a current price of $2,003.
Max Pain and the Week's Sell-Off
Bitcoin's put/call ratio sits at 0.84, with 45,790 calls versus 38,322 puts. That's slightly bullish on volume, but the price action tells a different story. BTC shed 5% over the week, sliding under the max pain level where options sellers would face the least total payout. Ethereum's ratio is even more skewed toward calls at 0.74, with 369,158 calls and 274,481 puts. Still, ETH dropped to $2,003, well below its $2,200 max pain.
The sell-off wasn't gentle. Institutional ETF selling totaled $2 billion since May 14, adding steady downward pressure. That's a lot of paper hitting the market in two weeks.
Where the Strikes Are
Bitcoin's open interest is heavily concentrated between $80,000 and $85,000 — a zone that now looks distant. Ethereum shows a different pattern: high put concentration right at $2,200, while call activity clusters at $2,500 and $3,000. Both assets broke below their main gamma exposure (GEX) resistance levels. For Bitcoin, that means resistance from open interest is expected to weaken. For Ethereum, gamma is now clustered around $2,000, right where the price currently sits.
That could amplify any move from here.
Implied Volatility Stays Flat
Implied volatility across all maturities remains suppressed below 40%, and long-dated IV continues to trend lower. The sharp three-day sell-off didn't produce a meaningful spike in short-term implied volatility — a sign the market didn't panic. The May options contract is trading around 20%, and the monthly settlement today is expected to reshape options positioning and gamma structure.
Large investors haven't substantially increased hedging. The broader market seems to be betting key support levels will hold. But with both assets trading below max pain, the expiry today could produce a sharp rebalancing as dealers delta-hedge through settlement.
The next thing to watch is whether the gamma structure reset triggers a snap-back or more drift. Traders will have their eyes on the weekend open.
