Crypto Options Expiry

Definition ∞ Crypto Options Expiry denotes the specific date and time when a cryptocurrency options contract ceases to be valid. At this point, the holder of the option must decide whether to exercise their right to buy or sell the underlying digital asset at the agreed-upon strike price. The expiry event can significantly influence market volatility and price action as traders adjust their positions or options are settled. This is a critical juncture for derivatives traders and market analysts.
Context ∞ Crypto Options Expiry events are increasingly observed as significant catalysts for short-term price movements in underlying digital assets like Bitcoin and Ethereum. Market participants closely monitor large open interest positions nearing expiry, as these can signal potential volatility or price manipulation attempts. The growing maturity of crypto derivatives markets means that these expiry dynamics are becoming more sophisticated, demanding careful analysis from investors and news outlets alike.