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Conversely, if a large number of options have strike prices < the current market price, there may be buying pressure as traders aim to realize profits or avoid losses.
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3. Market Sentiment: If a substantial number of options expire worthless (out of the money), it may signal bearish sentiment among traders. If many options expire in the money (with the underlying asset price favourable to the option holder), it may indicate bullish sentiment.
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4. Liquidity Impact: Traders who held options positions may convert their profits or losses into spot market transactions, affecting trading volumes and liquidity.
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