Bitcoin and Ether Options: Volatility, Term Structure, Skew, and Flows

Summary

This recap describes conditions in Bitcoin and Ether derivatives markets for the week ending March 29, 2023. It tracks volatility, option term structure, skew, option trading flows, and gamma positioning, highlighting calmer markets and term structures flattening after inversion. It also reports that put skew had recovered as the market turned and breakout expectations faded.

The evidence is a brief set of market observations, including stated option volumes of $5 billion notional for Bitcoin and $2 billion for Ether. The document does not provide charts, measurement definitions, underlying data, or a detailed explanation of how the observations were derived. It is a dated snapshot rather than a trading system or evidence that any particular options positioning would have been profitable.

Key ideas

• The recap observes that crypto markets had calmed over the preceding week.
• Bitcoin and Ether option term structures were flattening after inverted conditions.
• Put skew recovered as the market turned and breakout hopes diminished.
• The document reports $5 billion in Bitcoin options notional and $2 billion in Ether options notional.

Tags

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