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Bitcoin 1-month 25D Skew suggests a “Put Premium”
Bitcoin's options market as the 1-month 25D Skew indicates a "Put Premium," while the overall put-to-call ratio points to a bullish trend.
This article was published 3 years ago. Some details may no longer reflect current market conditions or recent developments. If you spot anything that needs an update, contact us.
Quick Take
- Skew is the relative richness of put vs call options, expressed in terms of Implied Volatility (IV). For options with a specific expiry, 25 Delta Skew refers to puts with a delta of -25% and calls with a delta of 25% to demonstrate this difference in the market’s perception of implied volatility.
- The Bitcoin 1-month 25D Skew suggests a “Put Premium”; the demand for puts increases as investors seek coverage to the downside.
- However, across the entire curve, the put-to-call ratios' overall position in the options market is skewed to the upside.
- This has been a bullish indicator this year.
A breakdown of the curve:
- 1 Week: -0.496%
- 1 Month: -0.293%
- 3 Months: -0.212%
- 6 Months: -3.156%
Market Cap $1.59T
24H Volume $33.02B
