Episode 17: ETH underperformance drives more protection buying

In this week’s podcast, Imran Lakha and David Brickell welcome Andrew Melville, volatility research analyst at Block Scholes.

They take a deep dive into what Andrew has been seeing in crypto volatility trends and how institutions are trading volatility in this rapidly growing asset class. Imran breaks down why options traders use butterflies to buy or sell convexity and discusses the reason why the volatility smile may be trading so flat. David summarises the macro news that is moving markets such as China unleashing more stimulus and key US CPI data due this week.

The following topics is covered:

0:00 – Introduction 1:04 – Intro of Andrew Melville & Block Scholes 3:48 – Insights on trends in crypto vol from Andrew 10:48 – Relative value on BTC & ETH and how to trade 14:38 – ETH to outperform BTC? 16:10 – Thoughts on crypto skew 19:15 – Hedging against Bitcoin 22:10 – Recent ETH option flows & low-volume 24:50 – Systematic trading in crypto 26:50 – Changes in macro? 31:30 – Meme stocks 34:00 – The flip side of crypto memes 35:02 – Key takeaway

Listen via Apple Podcast or Spotify.

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Disclaimer: The content presented on Crypto Options Unplugged is not intended as investment advice. Always conduct your own research.