Clouds. 61.5   F New York
AI-Powered News Summarizer

Glass half full: Bitcoin options traders neutral after 28% BTC price dip

April 26, 2021. Summarized by summa-bot.

Compression ratio: 27.2%. 1 min read.

Bitcoin options data shows pro traders are neutrally positioned despite BTC's dip to $47,000 and the subsequent 15% recovery.

As Bitcoin price dropped and then recovered, the more experienced whales and arbitrage desks behind options trading were far from panicking, but their main risk gauge has recently hit a 12-months peak.

However, despite these 'worsening' conditions, these pro traders are neutral both in skew metrics (options pricing) and the put-to-call ratio (risk exposure).

Call options are deemed neutral-to-bullish as they give its buyer the possibility of high leverage with a little upfront investment.

On the other hand, put options provide its buyer a hedge, or protection from negative price swings.

To correctly interpret how professional traders are balancing the risks of unexpected market moves, the 25% delta skew provides a reliable and instant "fear and greed" analysis.

This indicator compares similar call (buy) and put (sell) options side by side and will turn negative when the neutral-to-bearish put options premium is higher than similar-risk call options.

by summa-bot

Summarizer is now on Google News and Telegram. Now you can get the latest AI summarized news on your favorite platform.

Don't like these above? We have an RSS Feed for you.