In this week’s edition of Option Flows, Tony Stewart is commenting on the recent market movements.
BTC Puts bought last week playing their part on the fall in Spot down to 112k on Saturday.
No continued outsized trades, but Fast money continued to buy momentum Puts, some TPd, and Instos/miners selling out OTM Aug+Sep 125k+ Calls.
Put Skew firms a little more, but contained.
Messy strategy combinations forcing a breakdown by maturity to decipher:
Shorter dated (to the left) Puts bought (bottom left) by Fast money; low premium high momentum plays. A combination of Aug29+Sep (far right) tight Put spreads bought, funded by selling Aug+Sep OTM Calls.
If I charted BTC IV it would be similar to a medical flatline, illustrating a lack of large outsized non-strategy combination flows despite the Spot move.
But Put Skew has firmed, as Put buying and Call selling continue, reflecting downside play/hedges, plus Call dump/writes.
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ex-MS Head of Trading desk /BTC Vol. Prop trading /Option Market forensics/ Alter Ego account Digital Asset arena. Tweets are my opinion, not financial advice.