In this week’s edition of Option Flows, Tony Stewart is commenting on Tesla’s announcement of $1.5bn Bitcoin Treasury allocation.
1) Tesla's announcement of $1.5bn Bitcoin Treasury allocation sent spot surging >20% from 39k-48k. Short-term Option vol pumped in response. Then as BTC broke 44k, large buyers x2.5k+ of Feb12-26 44k-52k Calls lifted offers, IV surging >150% at its peak before cooling overnight. pic.twitter.com/zJuLE2aYI9
1) While BTC pulled back 10% from ATH, Feb Implied Vol pruned, suggesting gamma impacted players flat-long post-Tesla news. Options volumes exploded in Asian hours: Calls unwound, buyers near-OTM Puts x3k, bearish bias as BTC<45k. But MC +BNYMellon news has flipped bias +ve >46k. pic.twitter.com/UHnYyZUYjS