Open interest remains stable as options expire at yearend
Posted: Mon Feb 17, 2025 8:40 am
Bybit x Block Scholes report: BTC options perform robustly at parity, ETH poised for shortterm volatility
DUBAI, United Arab Emirates , Jan. , PRNewswire Bybit, the world's second largest cryptocurrency exchange by trading volume , has released its latest crypto derivatives analysis report in collaboration with Block Scholes. The report reveals key trends in open interest and market behavior for key yearend options expirations for Bitcoin BTC and Ethereum ETH.
Key Highlights:
While open interest in BTC and ETH perpetual contracts has yet to recover jordan phone number list to early December highs, they remain robust during the key yearend options expiry period. This suggests that traders are not overusing perpetual swaps to hedge delta risk on expiring options, and explains the relatively low volatility during this period. Trading volumes declined during the winter holiday season, coinciding with a plunge in realized volatility to its lowest level since December.
BTC options curve remains steep at parity
Contrary to expectations, the December options expiry did not trigger a sharp rise in volatility. In contrast, realized volatility slipped to the low end of its recent range. The term structure of implied volatility for BTC options remains steep, with longerdated implied volatility hovering around %, while week atthemoney options trade about percentage points lower. Most of the expiring open interest is not reinvested, and the bullish and bearish trades remain in a neutral balance. Therefore, compared with early December , the BTC options market shows limited leverage effect and cautious market sentiment.
DUBAI, United Arab Emirates , Jan. , PRNewswire Bybit, the world's second largest cryptocurrency exchange by trading volume , has released its latest crypto derivatives analysis report in collaboration with Block Scholes. The report reveals key trends in open interest and market behavior for key yearend options expirations for Bitcoin BTC and Ethereum ETH.
Key Highlights:
While open interest in BTC and ETH perpetual contracts has yet to recover jordan phone number list to early December highs, they remain robust during the key yearend options expiry period. This suggests that traders are not overusing perpetual swaps to hedge delta risk on expiring options, and explains the relatively low volatility during this period. Trading volumes declined during the winter holiday season, coinciding with a plunge in realized volatility to its lowest level since December.
BTC options curve remains steep at parity
Contrary to expectations, the December options expiry did not trigger a sharp rise in volatility. In contrast, realized volatility slipped to the low end of its recent range. The term structure of implied volatility for BTC options remains steep, with longerdated implied volatility hovering around %, while week atthemoney options trade about percentage points lower. Most of the expiring open interest is not reinvested, and the bullish and bearish trades remain in a neutral balance. Therefore, compared with early December , the BTC options market shows limited leverage effect and cautious market sentiment.