[Analysis] BlackRock Bitcoin (BTC) Options, Surge in Put Option Volume... "Strategy Aimed at Premium, Not a Bearish Bet"

It has been observed that the trading volume of put options based on BlackRock's Bitcoin (BTC) spot ETF, IBIT, is surging. However, there are opinions that the surge in put options does not necessarily indicate bearish sentiment.

According to the cryptocurrency-focused media CoinDesk on the 16th, the trading volume of IBIT put options with strike prices of $30 and $35, expiring in May next year and January the year after, has surged. On this day, IBIT is trading at $57.91.

There is an opinion that the surge in put option volume does not necessarily mean a bearish bet. Greg Magadini, Director of Derivatives at Amberdata, analyzed, "Investors are trying to earn (option premium) profits by selling cash-secured put options," adding, "It seems that traders who missed the (upward) rally are adopting a put option selling strategy."

The media added, "The call-put skew reflects optimistic investor sentiment," and "the premium for call options remains more expensive than for put options."

Meanwhile, a put option is the right to sell an asset at a predetermined strike price. It is generally reported that selling options is advantageous when the market is sideways or showing a gentle upward trend.

Also, skew refers to the difference in implied volatility between call options and put options. A positive skew value indicates that call options are favored over put options, while a neutral or near-zero skew value indicates that demand for bullish and bearish bets is balanced.