Investors wary as Shanghai upgrade looms, options market signals negative sentiment
Options 25 Delta Skew (1-week) indicates a bearish outlook for potential unlocks and downside risks in expectation of the Shanghai upgrade.
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
- The options market is finally starting to price in the Ethereum Shanghai upgrade, supposedly scheduled for April 12.
- Options 25 delta skew at the front end (1 week to 1 Month) suggests bearish sentiment, with puts starting to dominate calls.
- Furthermore, looking at options open interest by strike price — an overwhelming amount of puts (50,000 ETH) calling for $1,600 for April 7.
- However, on April 28, the options market is slightly bullish — with 90,000 ETH calls at $2,000.
- Negative sentiment towards Ethereum in the short term due to the potential of “unlocks.”
