Crypto options trading surged to $1.2 billion in 24 hours.
Bitcoin puts dominated with $530 million traded, highlighting bearish sentiment.
The cryptocurrency options market witnessed a significant uptick in activity following a sustained rally, with over $1.2 billion worth of trades executed within 24 hours. Bitcoin puts dominated the market, representing $530 million in trades, nearly a quarter of the total volume.
Among the most notable transactions was a deep-deflated calendar trade involving 500 contracts. The trade saw the sale of BTC-28MAR25-40000-P puts for ฿0.0130 per contract, with an implied volatility (IV) of 60.50%, amounting to $66 million in notional value. At the same time, 500 BTC-27DEC24-40000-P puts were bought at ฿0.0042 per contract, with an IV of 67.85%. This strategy allowed the trader to collect $300,000 in premiums. However, the exact motive behind the move remains unclear, reported the prominent data aggregator, Greeks live.
Meanwhile, this surge in block trades highlights the continued strength of options sellers in the market, with bearish sentiment still prevailing. Despite the substantial volume of put options being traded, their lower cost suggests that many traders are not necessarily predicting a steep downturn. Instead, they appear to be hedging their positions or seeking to profit from the current volatility.
Bears To Overrule In Coming Days?
Bitcoin’s recent rally to a two-week high of $65,700, marking a 1.4% gain in the last 24 hours and a 10% rise over the past month, has added to the momentum. ETH also saw a 3.1% surge in the same period, bringing its price to $2,617, with a monthly increase of 8%.
With trading volumes for both BTC and Ethereum up by 34% and 31% respectively, market sentiment appears cautiously optimistic. However, the dominance of options sellers, particularly in put options, suggests that bearish positions remain a key part of the current market landscape moving forward.
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