 | While doing my weekly research on what happened over the last week and how the market is currently pricing stuff, one thing that caught my eye this was Bitcoin's skew. BTC is pricing roughly a ±3.9% move for the coming week, but that's not really the interesting part. What's interesting is that puts are still trading a lot richer than calls. Downside protection is carrying about a 12 vol point premium over comparable upside exposure. It is normal that puts are more expensive than calls, but Deribit's pricing is quite substantial compared to the last few weeks. That surprised me. Bitcoin is down close to 18% just in the last week alone and traders are still paying up significantly for protection. So either traders remain genuinely worried about another leg lower, or nobody is in a hurry to sell that downside insurance. I'm not saying Bitcoin has to go down from here. Plenty of markets bottom while put skew remains elevated. But, the fear is quite clear on the options chain. I just think it's interesting that even after a meaningful selloff, the options market still seems a lot more concerned about downside than upside. Anyone else watching the skew or willing to sell some puts here? [link] [comments] |
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