Reading BTC and ETH Options Signals: Skew, Funding, and Term Structure

Summary

This weekly market note describes bullish positioning in Bitcoin and Ether derivatives. It points to positive perpetual funding, elevated implied futures yields with an inverted term structure, and option smiles skewed toward calls. It also reports that near-dated implied volatility rose ahead of the US election, with 14-day options approaching longer-tenor levels; seven-day volatility had spiked and then fallen, while far-dated volatility was mostly sideways. The discussion uses funding, futures curves, at-the-money implied volatility, and 25-delta risk reversals as indicators of positioning and changing demand for options.

The report is a snapshot rather than a complete trading method: the supplied text contains no numerical chart series, precise values, or explanation of how the metrics are calculated. Its interpretation ties front-end volatility to election uncertainty, but does not establish causation or quantify a trade’s expected return. These derivatives measures describe market pricing and sentiment at the time, and can change quickly; the note itself says the information is not investment advice.

Key ideas

• Positive perpetual funding and elevated futures yields are presented as signs of bullish positioning.
• Call-skewed option smiles indicate stronger relative pricing of calls across the described tenors.
• Near-term BTC and ETH implied volatility rose ahead of the election, while seven-day volatility reversed its earlier spike.
• The note is a dated market snapshot without detailed numeric series or a tested strategy.

Tags

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