Coinbase Says Bitcoin Options Skew Bullish as Call Demand Hits 91st Percentile
Summary
- Coinbase Markets said demand for call options betting on a rise in Bitcoin (BTC) prices is strengthening in the market for one-week BTC options.
- It said the volatility premium on Bitcoin call options was 2.1 percentage points higher than for put options, placing it in the historical 91st percentile.
- Coinbase Markets added that it remains to be seen whether this preference for call options reflects a rational bullish bet or one-sided positioning.
Forecast Trend Report by Period
Demand for bullish bets in the Bitcoin options market is strengthening, according to Coinbase Markets.
On Oct. 6, Coinbase Markets wrote on X, formerly Twitter, that the volatility premium on call options in one-week Bitcoin options was 2.1 percentage points higher than that of put options with the same expiry.
That level ranks in the 91st percentile of the historical distribution, meaning demand for call options is stronger than in about 91% of recent periods. In effect, investors are paying more for call options that profit from upside moves than for put options used to hedge downside risk.
Coinbase Markets added that it remains to be seen whether the pattern reflects a rational bullish bet or excessively one-sided demand for call options.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.