Bitcoin is Priced Higher And Lower Today
The implicit volatility of Bitcoin – traders expect price turmoil as reflected in the cryptocurrency options market – has also reached record levels since the latest crash.
According to data sources, next month’s price fluctuations in cryptocurrency demand will double from the beginning of May to 150% per annum, according to Sky.
As of press time, the gauge was somewhat lower at 123% per annum, still above the historical average of about 75%, and more than the 113% fluctuations that the market has actually seen over the past month Is moreSome traders are now taking advantage of this situation by selling options, mainly because these authors, mainly insurance sellers at fish prices, can bet that the latest reforms have passed.
This means that hereditary fluctuations will cool down in the coming days, and options will become cheaper.
If they are right, option sellers can prove to be the best time.
Amber Group, a crypto service provider, said the Asian Family Office and highly valued individuals are beginning to use the option (put cell) in view of the favorable ISO / high variability.
Said in a tweet thread early Monday.
Wikipedia: Fluctuations in a month Source:
Sky Strengthening volatility has a positive effect on the price of options and usually leads to a return to the long-term average.
Therefore, experienced traders sell options when they think the spread between the strong fluctuations and the historical average is very high.
When the volatility is relatively low, the same traders often want to buy options.
Input options are currently charging higher prices than call options, which is seen as a kind of acceleration condition for option buyers.
The dynamic positive is reflected in the one-week, one-month and three-month input call scales, which measure costs compared to call options.
Exchange data shows that there is a clear preference for selling pits at the current level of current volatility.
Shortcut trades account for 29% of the total flow seen today, while call sales account for 24%.
However, high volatility levels do not deter investors from buying calls, which is a sign of bullishness in the market.
Long makes only 14% (half of shortput trades), and buys 28% of calls.Bitcoin options flow (blocked trades represent flow at OTC desk) Source:
Sky Writing Bitcoin options is a risky business
Selling or writing options are equivalent to selling a lottery ticket or insurance policy, where losses can be significant while profits are up to the premium received.
Premium insurance is a compensation paid by the option (insurance) buyer to the seller.
And, of course, cryptocurrencies like bitcoin can be highly volatile and unpredictable.
It is entirely possible that bitcoin prices will fall further. Therefore, price-based input options look attractive, it is a risky business and is probably the best safe for investors and traders who can afford to incur losses.
Volume of Bitcoin options Source:
Levitas Over the past 24 hours, the exchange featured strike prices of 32 32,000, $ 30,000, and 000 28,000, based on data provided by the Swiss-based crypto derivatives tracking platform Levitas.
Sales have been seen.
This suggests that more traders believe they are being smartly compensated for providing protection at these levels.
If the bitcoin continues to recover lost land, the input options will reduce the price, giving traders a paper profit.
However, if the value of the bitcoin falls below 000 28,000, the value of the input options increases for the holders, to the detriment of the sellers.