Crypto Options Market Review: Volatility, Skew, and Positioning in March 2023
Summary
This weekly review combines macroeconomic context with observations on Bitcoin and Ether options markets around the March 2023 Federal Reserve decision. It discusses a flatter Bitcoin volatility term structure, the relative implied volatility of Ether and Bitcoin, and positive Bitcoin risk-reversal skew. The author interprets these measures as signs of uncertainty about whether Bitcoin would consolidate, continue rising, or trade more like a monetary asset than a risk asset. The review also summarizes reported options flows, including demand for upside calls and call spreads, some put buying, and notable Bitcoin and Ether expirations.
The article links strong options activity and choppy spot trading to low liquidity and dealer positioning, and notes that implied volatility fell after the Fed announcement before upside interest returned. It also includes a separate Ether volatility and volume update. These are dated market observations and interpretations, not a tested trading strategy: the piece provides no systematic entry rules, risk controls, or out-of-sample performance. Its conclusions depend on contemporaneous positioning and macro conditions, which can change quickly.
Key ideas
- The review interprets a flatter Bitcoin term structure as uncertainty about the next price move.
- It compares Ether and Bitcoin implied volatility and describes positive Bitcoin risk-reversal skew.
- Reported options flow favored Bitcoin calls and call spreads, with some put demand and profit-taking.
- The author connects volatile spot trading with low liquidity and dealer options exposure.
- The observations are time-specific market commentary rather than a tested strategy.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.