Bitcoin and Ether Options Recap: Volatility, Skew, and Call Flows
Summary
This mid-week market recap summarizes several observations about Bitcoin and Ether options as of January 31, 2023. It reports that recent large price swings kept 10-day realized volatility from declining sharply, while Bitcoin’s term structure remained slightly inverted as substantial realized moves continued. The recap also notes that skew was beginning to shift back toward a premium for puts after several weeks of call premium, especially in Ether.
Options flow was described as call-dominated for another week. These points offer a snapshot of volatility, relative option pricing, and traded flow that derivatives traders may use to frame market conditions. The document gives no underlying data, numerical measures for skew or flows, comparison with historical norms, or explanation of how the observations were calculated. It is a brief dated market commentary rather than a trading method or forecast, so the observations should not be treated as evidence that a particular direction or options position will be profitable.
Key ideas
- Recent large crypto price swings kept 10-day realized volatility from falling sharply.
- Bitcoin’s term structure was described as slightly inverted amid continued realized moves.
- Option skew was shifting toward put premium, particularly for Ether.
- Reported option flows were dominated by calls, but the recap provides no supporting flow data or trading test.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.