news

bitcoin

1 X bitcoin bitcoin =

Thursday

26 November 2020

Bitcoin Options Investors Are Starting to Hedge Against Potential Price Pullback - CoinDesk

Bitcoin Options Investors Are Starting to Hedge Against Potential Price Pullback - CoinDesk


smart summary beta

The one-month implied volatility, which is influenced by the demand for call and put options, jumped from roughly 55% to a four-month high of 70.5% in the past two days, suggesting increased expectations for price turbulence over the next four weeks.

These numbers indicate increased demand for put options – a sign of investors hedging against a potential price pullback.

While call buying can and does cause a rise in implied volatility metrics, in this case, the put-call skew has recovered alongside the pick up in volatility, suggesting a rise in demand for puts.

Implied volatility, a key component in calculating the price of an option, is the expected standard deviation of returns over a selected period and is expressed in annualized terms.

Goto Full Article

bitcoin bitcoin price

$17160.90

24h

Live Average

bitcoin

News Article Sentiment

negative

Score (-0.1)

Article Metadata

author

site

coindesk.com
Market data feeds provided by cryptocompare.com
bitsmart 2020