In this week’s edition of Option Flows, Tony Stewart is commenting on Large players took advantage of Dec100k, BTC bounces and aggresive Call buying in 52k-72k.
1) BTC 40k-32k. Back near the 36k strike; Poetic. A technical options day: Large players took advantage of the Dec100k+ Call buyer, using elevated levels to sell the Calls and buy Dec24+28k Puts. Short Sep Calls moved to Dec. Jan32k Calls closed more shorts. Fast-money near-date. pic.twitter.com/XvpAH5v1sq
Jan29th 32k+36k Call Long flinched first, 15k+ unwound, profiting ~$50m. But positivity shines bright in this man's eyes, using some proceeds to buy 10k+ Jan29th 52k-72k Calls. Unwinds very close to 'marks', both sides axed to purge huge ATM uncertainty+risk. pic.twitter.com/06uu8SZSYH
1) Extremes. Aggressive 52k-72k Call buying continued; OI>33k. Strike IV spiked, new levels; 52k>225%, 72k>245%. But also crash Puts sought, Jan 20-25k Puts. 200%+ IV. At such IV, neither perform without a massive burst move. 10%+ spot swings ubiquitous. 10d RV 125%. ATM IV>140% pic.twitter.com/yxocVqtAwa
1) A frenzied 10minutes buying of Jan 52-72k Calls x1k+, BTC trading 35k, spiked Strike Vols +25% but barely registered on data charts; sellers absorbed and slammed prices back. Owner of Dec 100k Calls reduced notional + Strike down to the 64k Calls, utilizing a clever 1x1.5 x1k. pic.twitter.com/rRrPkvI9Te