Crypto Options Don Surge: BTC & ETH Put Volume Don Spike
Derive.xyz talk say crypto options trade don increase as investors dey rush go buy put options to protect demself from downside risk after last month rally cool down. For August 29 expiry, BTC put open interest pass call almost 5×, half dey for $95k strike. ETH put open interest pass call by over 10%, dem concentrate for $3,200, $3,000 and $2,200 strikes. Spot BTC and ETH don drop 3.4% and 5.4% week-on-week to $114,484 and $3,654. The 30-day skew for both don flip to –2%, mean say demand dey for downside protection. Implied volatility be 35% for BTC, 65% for ETH. Derive probability model give 25% chance say ETH go fall below $3,000 and 18% chance say BTC go try test $100,000 again before month end. These crypto options strategies show say traders dey cautious because Fed still dey uncertain.
Bearish
Di increase for crypto options put volumes for BTC and ETH dey show say traders dey defensive and bearish as dem dey hedge against possible price fall. High put open interest compared to calls, negative skew flips, and high implied volatility all mean say people dey expect short-term downside risk. For short term, heavy put buying fit slow price momentum as market people dey put protection first. But for long term, this protective positioning fit absorb volatility and stop sharp sell-offs, leading to more stable trading environment once risk mata settle.