{"id":105031,"date":"2020-11-05T00:19:09","date_gmt":"2020-11-04T21:19:09","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/record-2-9b-bitcoin-options-open-interest-follows-btc-rally-to-14259\/"},"modified":"2020-11-05T00:19:09","modified_gmt":"2020-11-04T21:19:09","slug":"record-2-9b-bitcoin-options-open-interest-follows-btc-rally-to-14259","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/record-2-9b-bitcoin-options-open-interest-follows-btc-rally-to-14259\/","title":{"rendered":"# Record $2.9B Bitcoin options open interest follows BTC rally to $14,259"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3dd2d5b6759\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3dd2d5b6759\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/record-2-9b-bitcoin-options-open-interest-follows-btc-rally-to-14259\/#Observe_the_put-call_ratio_for_additional_confirmation\" >Observe the put-call ratio for additional confirmation<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Record $2.9B Bitcoin options open interest follows BTC rally to $14,259  <\/strong>&#8221;<\/p>\n<div data-v-5a136f3a=\"\">The open interest on Bitcoin (BTC) options contracts has reached a new all-time high at $2.9 billion. Interestingly, this feat h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened only five days after the October expiry, which liquidated $400 million worth of options.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/09cc2e92-50cf-43ca-94e1-45e58ba7c6d8.png\"\/><figcaption style=\"text-align: center;\"><em>Bitcoin options total open interest. Source: Skew<\/em><\/figcaption><\/figure>\n<p>Over the past six months, the options market has grown three-fold, causing investors to grow more curious about the potential impact upcoming expiries will have on Bitcoin price. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/c18ec0d8-ed04-4c7e-bdec-1fe33cf3690c.png\"\/><figcaption style=\"text-align: center;\"><em>Monthly BTC transaction volume (USD). Source: Digital Assets Data<\/em><\/figcaption><\/figure>\n<p>Data from Cointelegraph and <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.digitalassetsdata.com\/\">Digital Assets Data<\/a> also show that monthly Bitcoin transaction volume and BTC futures volume has been on the rise since the end of October. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/6b309e10-de2c-4103-870d-0555c8daaaf7.png\"\/><figcaption style=\"text-align: center;\"><em>BTC futures volume by exchange. Source: Digital Assets Data<\/em><\/figcaption><\/figure>\n<p>When analyzing options, the 25% delta skew is the single most relevant gauge. This indicator compares similar call (buy) and put (sell) options side-by-side. <\/p>\n<p>It will turn negative when the put options premium is higher than similar-risk call options. A negative skew translates to a higher cost of downside protection, indicating bullishness.<\/p>\n<p>The opposite holds when market makers are bearish, causing the 25% delta skew indicator to gain positive ground.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/b31490ef-263b-4fa5-8668-03c968bf7f2c.png\"\/><figcaption style=\"text-align: center;\"><em>Bitcoin 3-month options 25% delta skew. Source: Skew<\/em><\/figcaption><\/figure>\n<p>Oscillations between -10% (slightly bullish) and +10% (slightly bearish) are considered normal. This hasn\u2019t been the case since Oct. 19, when Bitcoin broke the $11,600 level and never looked back.<\/p>\n<p>This indicator is the most substantial evidence a trader interested in derivatives needs to recognize Bitcoin options&#8217; current sentiment.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Observe_the_put-call_ratio_for_additional_confirmation\"><\/span>Observe the put-call ratio for additional confirmation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To further investigate how those instruments are being used in traders\u2019 strategies, one must dive into the put-to-call ratio. Call (buy) options are <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly used on neutral and bullish strategies, while put (sell) options the opposite.<\/p>\n<p>By analyzing the open interest ratio between put and call options, one can broadly estimate how bearish or bullish traders are.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/c2981ace-abbe-4192-bf45-41a794865495.png\"\/><figcaption style=\"text-align: center;\"><em>Bitcoin options put-to-call ratio. Source: Skew<\/em><\/figcaption><\/figure>\n<p>Put options open interest have been lagging the more bullish call options by 30%. After the October expiry, this difference increased as the indicator reached its lowest level in 3 months.<\/p>\n<p>Based on the current conditions shown by the skew indicator and put-to-call ratio, there is little reason to worry about the growing options open interest. <\/p>\n<p>The market has been signaling bullish intentions, and the liquid derivatives markets are allowing larger players to hedge and enter the spot market. <\/p>\n<p>From the BTC options perspective, everything is clear for the current bull run to continue.<\/p>\n<p><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>autho<\/em><em>r<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"\/><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/record-2-9b-bitcoin-options-open-interest-follows-btc-rally-to-14-259\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Record $2.9B Bitcoin options open interest follows BTC rally to $14,259 &#8221; The open interest on Bitcoin (BTC) options contracts has reached a new all-time high at $2.9 billion. Interestingly, this feat happened only five days after the October expiry, which liquidated $400 million worth of options. Bitcoin options total open interest. Source: Skew&#8230;<\/p>\n","protected":false},"author":1,"featured_media":105032,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/dbb002b7-0b22-4efc-bde7-fda5a85e7f1b.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74972,74937,75012,74939,73785],"class_list":["post-105031","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-futures","tag-bitcoin-price","tag-derivatives","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/105031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=105031"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/105031\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/105032"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=105031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=105031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=105031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}