In this week’s edition of Option Flows, Tony Stewart is commenting on BTC postitive intraday swings, Gamma and Squeezing volume.
1) BTC 20%+ Intraday swing. Option IV >100% more than paying for moves, + long options avoiding perp/fut liquidations. Flows absent of large Insto funds, (return today), but volumes high with fast money HNW/retail. DEFCON2 Jan29 32+36k strikes, neither side displaying weakness. pic.twitter.com/uEXzlngvec
1) Implied Vols (price of options) surge. BTC 1week >150%. Intraday swings, pain on short option trades, anticipated BTC 40k+ spike. Elevated IV presents opps for brave. Jan29 40k Call sold x600 at ~$5000 (138% IV). But huge Short covering in 23-26k Calls x2k sobering reminder. pic.twitter.com/8hL3vJYjIX
1) Short-closing Jan29 ITM Calls now up to 28k-32K strikes x1k+, squeezing vol up 20% at the front. But the trade of interest printed in Dec21 100k+ Calls, net x2k of which was buying interest, initially via Jun64k-Dec100k+ CS, then outright Dec21 100k Call. Several explanations: pic.twitter.com/Sdaim6cfg9