Would you offer insurance by waiting for low chances of making a claim? Most likely, you would, while the premium was pocketed without thinking twice. Bitcoin merchants (BTC) are doing something similar in the BTC options market that is quoted in the detribit, hinting the expectations of bullish prices.
Recently, a growing number of merchants has been selling (writing) BTC sales options, compared to providing insurance against price falls in exchange for an initial small premium.
They are implementing this strategy in an insured in cash by maintaining a corresponding amount in Stablecoins, ensuring that they can buy BTC if the market decreases and buyer Put decides to exercise their right to sell BTC at the highest predetermined price.
This strategy allows merchants to collect premiums (paid by PUT buyers) while accumulating bitcoin if the options are exercised. In other words, it is the expression of a long -term upward feeling.
“There is a remarkable increase in the sale of cash sale using Stablecoins, another sign of a more mature approach and long term for the accumulation of BTC and a continuous expression of bullish feeling,” said the head of commercial development of Asia de Deribit, Lin Chen, to Coinridesk.
Cen said that BTC holders are also selling higher strike purchase options to collect premiums and generate additional performance on their currency stash, which weighs on the DVOL DVOL index, which measures implicit volatility with 30 -day BTC. The index has fallen from 63 to 48 from the panic of April 7 that is sold in BTC to $ 75K, according to data from the TrainingView platform of the graphics platform.
“We observe that investors are still long-term bundles in BTC, particularly among crypto-national” headlines that are willing to maintain through market cycles, “Chen said.
The price of Bitcoin has increased to more than $ 92,000 from the fall of the first month to $ 75,000, supposedly at the back of the refuge demand and the renewed narrative of institutional adoption.
Acute price recovery has seen BTC options risk reversions to suggest bias for purchase options in time tables, according to the data source. In the last two days, merchants have specifically collected on strike of $ 95,000, $ 100,000 and $ 135,000 through the Paradigm of the Technological Platform for free sale. At the time of writing, the $ 100,000 strike call was the most popular option in the Deribit game, with an open notional interest of more than $ 1.6 billion.
$ 9 billion in Delta
The importance is to trace the flows in the options market can be explained by the fact that the cumulative delta in the options and BTC options of demribit linked to the Blackrock Spot ETF (Ibit) and its companions was $ 9 billion as of Wednesday, according to the data tracked by Volmex.
The data indicates a greater sensitivity of the options to the changes in the price of BTC, which suggests potential for price volatility.
Delta, one of the metrics used by the sophisticated market participants to manage the risk, measures how much it is likely that the price (premium) of an option contract changes in response to the probability of $ 1 in the price of the underlying asset, in this case, BTC.
Therefore, the $ 9 billion cumulative delta represents the total sensitivity of all pending options of ETF BTC and Bitcoin to changes in the spot price. Until Wednesday, the total notional value of all pending options contracts was $ 43 billion.
Such large data or sensitivity to pricing changes in the underlying asset means that market manufacturers and merchants actively participate in coverage strategies to mitigate their risks. It is known that market manufacturers, or those forced to provide liquidity of orders books, increase prices volatility through their constant effort to maintain a net neutral exposure.
“Deltas options have increased to record levels as the open interest and attack deltas changed significantly.
According to Volmex, native cryptographic options on Deribit are positioned more reached than these negotiation options linked to Ibit.
