{"id":236025,"date":"2021-04-26T23:30:00","date_gmt":"2021-04-26T20:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/glass-half-full-bitcoin-options-traders-neutral-after-28-btc-price-dip\/"},"modified":"2021-04-26T23:30:00","modified_gmt":"2021-04-26T20:30:00","slug":"glass-half-full-bitcoin-options-traders-neutral-after-28-btc-price-dip","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/glass-half-full-bitcoin-options-traders-neutral-after-28-btc-price-dip\/","title":{"rendered":"# Glass half full: Bitcoin options traders neutral after 28% BTC price dip"},"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-6a3a86873d1d7\" 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-6a3a86873d1d7\" 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\/glass-half-full-bitcoin-options-traders-neutral-after-28-btc-price-dip\/#The_adjusted_put-to-call_options_ratio_stands_neutral\" >The adjusted put-to-call options ratio stands neutral<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/glass-half-full-bitcoin-options-traders-neutral-after-28-btc-price-dip\/#The_options_pricing_risk_indicator_is_neutral\" >The options pricing risk indicator is neutral<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Glass half full: Bitcoin options traders neutral after 28% BTC price dip <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Bitcoin (BTC) might have recovered from the $47,000 low seen on April 25, but the subsequent 15% bounce was not enough to bring optimism to the BTC options markets. Even at the present $54,000 level, the price remains 17% below the $64,900 all-time high reached on April 14.<\/p>\n<p>The popular Crypto Fear &amp; Greed Index <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/alternative.me\/crypto\/fear-and-greed-index\/\">reached<\/a> its lowest level in 12 months, signaling thatinvestors are closer to &#8220;extreme fear,&#8221; which is a complete reversal from the &#8220;extreme greed&#8221; level seen on April 18. This indicator gathers data from price volatility, volume change, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social media<\/a> activity, Bitcoin dominance and recent search trends.<\/p>\n<p>As Bitcoin&#8217;s 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-month peak. However, despite these &#8220;worsening&#8221; conditions, these pro traders are neutral both in skew metrics (options pricing) and the put-to-call ratio (risk exposure).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_adjusted_put-to-call_options_ratio_stands_neutral\"><\/span>The adjusted put-to-call options ratio stands neutral<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Call options give the buyer the right to acquire BTC at a future date for a fixed price, while the seller is obliged to honor this privilege. For this right, the buyer pays an upfront fee (premium) to the counterparty. Call options are deemed neutral-to-bullish, as they give its buyer the possibility of high leverage with a little upfront investment.<\/p>\n<p>On the other hand, put options provide their buyer a hedge, or protection, from negative price swings. As a result, these are widely used in neutral-to-bearish strategies.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/81658492-4f68-4953-91d7-f94279ef12a4.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Deribit BTC open interest by expiry. Source: Laevitas<\/em><\/figcaption><\/figure>\n<p>As the above chart indicates, both call and put options are balanced, except for Friday&#8217;s expiry. Although this could reflect short-term optimism, a more granular view shows that some ultra-bullish call options dominate the scene. Therefore, by adjusting it to a more realistic price range for the next four days, calls and puts are way more balanced.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/1bd5103c-1dd1-475b-88d2-6351c65097e5.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Deribit BTC open interest on April 30. Source: Laevitas<\/em><\/figcaption><\/figure>\n<p>Take notice of how the $72,000\u2013$120,000 call options dominate the April 30 expiry. Therefore, considering the $44,000\u2013$68,000 range exclusively, calls represent 48% of the outstanding open interest.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_options_pricing_risk_indicator_is_neutral\"><\/span>The options pricing risk indicator is neutral<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To correctly interpret how professional traders are balancing the risks of unexpected market moves, the 25% delta skew provides a reliable, instant &#8220;fear and greed&#8221; analysis. <\/p>\n<p>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. This situation is usually considered a &#8220;fear&#8221; scenario.<\/p>\n<p>On the other hand, a negative skew translates to a higher cost of upside protection, which is <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly interpreted as a &#8220;greed&#8221; measurement.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/86e183b8-f5a7-414a-b224-f39d7f2f0e60.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Deribit 90-day BTC options 25% delta skew. Source: Laevitas<\/em><\/figcaption><\/figure>\n<p>For the first time in 2021, the 25% delta skew has flattened after spending most of the time on the &#8220;greed&#8221; side. A similar situation emerged on March 25 after BTC corrected 18% from the $61,800 peak 10 days prior.<\/p>\n<p>Overall, the options markets indicators are neutral, indicating a mild lack of trust in the recent $47,000 bounce. On the other hand, the same metrics could be interpreted as positive, considering pro traders did not flip bearish despite the 28% drop in the past 11 days.<\/p>\n<p class=\"post-content__disclaimer\"><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" 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\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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Even at the present $54,000 level, the price remains 17% below the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":236026,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDQvNDVkZTQzYzAtOGQ0Yy00ZjE1LTg0YjItYWFmN2RmYmIxZjhjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,81209,74937,74982,74863,74860,75012,73785],"class_list":["post-236025","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-options","tag-bitcoin-price","tag-btc-markets","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-derivatives","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/236025","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=236025"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/236025\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/236026"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=236025"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=236025"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=236025"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}