CME BTC Options Skew Hits Post-Election High…"Will Act as Upward Pressure"

The previous day, it was reported that the Bitcoin (BTC) options trading call-put skew (the difference in implied volatility between call options and put options) at the Chicago Mercantile Exchange (CME) reached its highest level since the election. As a result, there are claims that traders' bullish sentiment will act as upward pressure on Bitcoin.

On the 21st (local time), Thomas Erdős, head of products at CF Benchmarks, stated in an interview with CoinDesk, "The 30-day upper skew in the Bitcoin options market has reached its highest level since the U.S. election," and "This reflects a strong bullish sentiment among options traders." He added, "Traders have shown aggressive bullish sentiment in both short-term and long-term Bitcoin options."

According to CF Benchmarks data, the previous day's Bitcoin call-put skew reached 4.4%, marking the highest level since the election. A positive skew value means that call options are dominant over put options, indicating that a higher proportion of traders in the options market predicted a rise in Bitcoin.

Furthermore, Erdős stated, "Unless there are unexpected policy changes, the upper skew is likely to remain," and "This will act as sustained upward pressure on Bitcoin."

Meanwhile, a call option is the right to buy a specific underlying asset at a predetermined strike price. If the market price of the underlying asset is higher than the predetermined strike price on the expiration date, the call option buyer can exercise the option and profit from the difference.