Crypto Options Positioning During the June 2023 Bitcoin Rally
Summary
This market report reviews crypto price action and options positioning during a sharp late June 2023 rally. It links the move to news about spot ETF filings and a new exchange, then describes rising Bitcoin volatility, a higher options term structure, and a period of backwardation followed by volatility selling. It also discusses dealer gamma exposure around quarterly expiry and compares Bitcoin and Ether implied volatility and options activity.
The report cites options flow examples, including call buying at selected Bitcoin strikes, profit taking and rolling of positions, and mixed Ether trades. It also summarizes volatility and liquidity observations from decentralized options venues and vaults. These are snapshots and commentary, not a systematic trading method or controlled evidence that news caused the price moves. The report notes that outcomes depend on implied volatility, path, and execution, and that a reversal in relative prices could change the volatility relationship between Ether and Bitcoin. Its figures and positioning descriptions are specific to the dates covered and should not be treated as current market conditions.
Key ideas
- Bitcoin’s rally coincided with increased options activity and higher implied volatility.
- The report describes a term structure shift and temporary backwardation after sharp price gains.
- Options flow included call buying, profit taking, and rolling positions across strikes and expirations.
- Dealer gamma exposure around quarterly expiry was identified as a potential market factor.
- Trade outcomes depend on implied volatility, price path, and execution as well as directional views.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.