May 25, 2023
Weekly Mid-week Crypto Derivatives Market Recap where Imran Lakha of Options Insight gives brief yet concise breakdowns of BTC's & ETH's Volatility, Term-structure, Skew, Crypto Option Flows, and Gamma positioning.
This week Imran walks us through some key points.
1. Crypto trading ranges tighten, realized vol for BTC and ETH has collapsed below 30%
2. BTC Term Structure back into contango as vols collapse due to poor realized.
3. Skew - Call Skew was apparent across the BTC term structure last week. Skew back into mild put premium (particularly in the belly of the curve)
4. BTC Option Volumes drifted slightly as there were more volatility trades and less directional plays / ETH Option flows were still dominated by call sellers keeping pressure on implied vols.
5. BTC dealer gamma back down to neutral having flipped positive post last week's expiry / ETH positioning is still long and getting longer as spot remains pinned at $1800 and 26 May expiry dominates into Friday!
