Options 101: The Foundation
Topics covered:
1.) What is a derivative?
2.) What is an option?
3.) Options example ( airline industry )
4.) Options example ( $BTC )
5.) American vs European options
Rolling 30-day notional volume of block trades brokered by Greeks.live reached $530 million, with deribit at $437 million and okx at $93 million, both all-time highs!
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Bitcoin is back to the $44,000, driving block trades of over $100 million in call options in the last hour, and the BTC market, which had been relatively quiet today, is once again in a bullish mood, with rallies in all major term IVs.
In contrast, ETH saw a divergence in trend,
In just the past hour, over 40,000 ETH Block calls were traded, almost all buying 29DEC23-2200-C, and with the nearly 50,000 buying 27OCT23-2000-C last night, the cumulative number of block calls traded has reached 92,600 ETH.
The whale actively bought $150 million worth of
Legendary trader Hao says implied skew has alpha.
What is it?
Implied skew in options markets reflects the difference in implied volatility between OTM puts and calls. This skew provides insights into market sentiment and potential direction
If IV is higher for OTM puts than
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1️⃣ Multi-Leg
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The likelihood of the ETF's passage became less and less likely, and the market saw a stalemate. Weakness in crypto mining stocks, and the sell-off in several crypto-related U.S. stocks, also reinforced the market's skepticism.
ATM option IV plummeted to 52% for the week and
There is news in the market that the SEC will pass the Bitcoin Spot ETF application as early as next Tuesday, but there was little volatility across the major term IVs and the price.
Looking at the options data, Jan12 options IV, which is strongly correlated to the ETF, fell
20 Dec Options Data
21,000 BTC options expired with a Put Call Ratio of 0.87, a Maxpain point of $101,000 and a notional value of $2.04 billion.
173,000 ETH options expired with a Put Call Ratio of 0.5, a Maxpain point of $3,750 and a notional value of $590 million.
BTC entered a