Bitcoin’s options market is in the midst of its strongest bullish sentiment on record as the cryptocurrency rallies to three-year highs. The six-month put-call skew, or the spread between prices. Dec 22, · In response to growing interest in cryptocurrencies and customer demand for tools to manage bitcoin exposure, CME options on Bitcoin futures (BTC) are now trading. The value of options on Bitcoin futures is based on the regulated CME CF Bitcoin Reference Rate (BRR) and settles into actively traded Bitcoin futures. Jan 13, · Until options on bitcoin futures gain a deeper following, any trader will face a market — meaning the bid for any option and the offer price for that option — that is very wide. For example, the.
Bitcoin options marketBitcoin’s Options Market Shows Strongest Bullish Mood on Record - CoinDesk
Until options on bitcoin futures gain a deeper following, any trader will face a market — meaning the bid for any option and the offer price for that option — that is very wide. That doesn't mean option sellers will have it any better off. The seller of a naked call option would face unlimited losses if bitcoin were to resume the rally it enjoyed in Options on bitcoin futures will likely be a great tool for speculators in the cryptocurrency space.
Speculators in other asset classes have known for a long time that options offer the ability to limit losses and create unique payoff profiles. And it's always good for investors and speculators to have more options.
These views should not be construed as a recommendation for any specific security or sector. Record bullish or bearish sentiment often marks major market tops or bottoms. Besides, the mean reversion of bullish bias in options, if any, is unlikely to affect the spot market because the options market is still relatively small.
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