Bitcoin Options Skew Reveals Persistent Put Bias Across All Time Frames

Deribit’s Luuk Strijers notes traders are increasing downside protection following the Federal Reserve’s recent dovish rate cut.

BTC

Summary

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Terms & Concepts
  • Options Skew: A measure of the difference in implied volatility between out-of-the-money calls and puts, indicating market sentiment toward potential price moves.
  • Put Option: A financial contract giving the buyer the right to sell an asset at a specified price before expiration, often used for downside protection.
  • Dovish Rate Cut: A monetary policy move where a central bank lowers interest rates to stimulate the economy, typically signaling an accommodative stance.