Bitcoin and Ethereum Options: Volatility, Skew, Flows, and Gamma
Summary
This mid-week derivatives recap summarizes conditions in Bitcoin and Ethereum options. It reports that realized volatility recovered during the week, while both assets’ volatility term structures moved lower; Bitcoin’s curve shifted further into contango. As markets fell, demand for downside hedging appeared, which the recap characterizes as a false break.
The flow and positioning notes distinguish the two markets: Bitcoin option volume was described as average, while Ethereum activity was dominated by large calendar selling. Dealer gamma was still short in Bitcoin during the sell-off, whereas Ethereum positioning was more neutral after the market moved away from upside calls. These observations offer a compact framework for monitoring volatility, skew, term structure, options flows, and dealer positioning together. The text gives no underlying data, charts, precise measurements, or detailed methodology, and it is a snapshot of one week rather than evidence of a persistent market pattern.
Key ideas
- Realized volatility in crypto recovered during the reported week.
- Bitcoin and Ethereum term structures moved lower, with Bitcoin more deeply in contango.
- Downside hedging demand appeared as markets rolled over, though the move was described as a false break.
- Ethereum option activity featured large calendar selling, while Bitcoin volumes were average.
- Dealer gamma remained short in Bitcoin and was more neutral in Ethereum.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.