Bitcoin Options Flow: Skew, Range Trading, and Longer-Dated Calls
Summary
This weekly market note describes Bitcoin and Ether options positioning amid sharp price moves and thin weekend liquidity. It reports that structured product selling and out-of-the-money put premium collection had faded, while limited aggressive put selling kept put prices and implied volatility firm. The market had tested both ends of an established range, with rallies sold and dips bought, but the author saw little momentum. A volatility fund sold July strangles at the 30,000 and 40,000 strikes, expressing the view that the wider range could hold on another test.
The note contrasts elevated short-dated Bitcoin put skew, reflecting demand for near-term protection and scarce natural supply, with flatter longer-dated skew. It also records December call buying in Ether and Bitcoin. These are observations of market flow and the author's interpretation, not a tested trading system or proof that the range would persist. The note gives no performance data or detailed risk analysis for the reported positions.
Key ideas
- Reduced put selling and scarce natural supply helped keep put prices and implied volatility firm.
- The market had traded within a range, with rallies sold and dips bought, but momentum was weak.
- A volatility fund sold July strangles to express a view that a wider Bitcoin range would hold.
- Elevated short-dated put skew reflected demand for protection and limited supply.
- Longer-dated skew was flatter as traders added December calls in Bitcoin and Ether.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.