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Bitcoin and Ether Options: Volatility, Skew, Flows, and Dealer Gamma

Article Amberdata research
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Summary

This weekly market recap discusses Bitcoin and Ether options through realized and implied volatility, term structure, call skew, relative value, trading flows, and dealer gamma. It reports elevated realized volatility in both assets, firmer implied volatility and term structures, and softer call skew. The account links these shifts to spot advances, option transactions, and changing expectations around an Ether ETF decision.

The recap describes profit-taking and new call-spread activity in both markets, alongside Ether downside protection buying. It also characterizes dealer gamma as near neutral to long in Bitcoin and weaker in Ether, suggesting the latter could remain more volatile. The observations are a dated snapshot, tied to market levels and expiries at the time of writing; they do not establish causal relationships or provide a backtest. Its comments on relative value and waiting for a stronger ETH/BTC move are the author’s market views, not a general trading rule.

Key ideas

  • The recap connects rising realized volatility with firmer implied volatility and option term structures.
  • Bitcoin and Ether call skew softened during the reported period.
  • Reported flows included call spreads, profit-taking, and Ether downside protection buying.
  • Dealer gamma was described as more supportive in Bitcoin than in Ether.
  • The ETH/BTC relative-value discussion is a time-specific view rather than a validated rule.

Tags

CryptoOptionsVolatilityDerivatives pricingMarket microstructure

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.