Option Flow: Spot Pulls, Puts Buy

In this week’s edition of Option Flows, Tony Stewart is commenting on the recent market movements.

STRC assisted BTC to 76k and last report’s 75k Calls to a 4x, but there was no sign of profit taking as Spot retraced hard. Instead, buying of 50-60k Puts, +Mar Put spreads. When Israel hit energy infra yesterday and PPI came in hot, Puts lifted via April+Dec risk reversals.

Further OTM ‘Crash Puts’ accumulated:

• Mar 55+60k, April 50k decent notional size.
• Mar 65-58k Put spreads, Apr3 85k Calls sold.
• April 62k Puts, funded by selling Apr 85k Calls.
• Dec 62k Puts, funded by selling Dec 90k Calls.

Dvol (1month proxy Implied Vol) is behaving in a very orderly manner, with even a little softening over the last couple days.

But compared to spikes over the last month it is priced moderately for those believing in volatility ahead.

Put Skew naturally remains elevated.

See original post on X here.

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