Call option premiums rise as traders bet on Bitcoin gains after U.S. election

Odaily Planet Daily Report: Wintermute's over-the-counter trader Jake Ostrovskis said that bitcoin options traders are paying a large premium for call options, indicating that investors' optimism about the future price increase of bitcoin is growing. The 1-month 25-delta skew of bitcoin options is currently tilted towards call options by about 3.3 points. Ostrovskis said this skew indicates that derivatives traders are preparing for a potential price increase in bitcoin, "this premium is a clear signal of the bullish sentiment in the market." Ostrovskis emphasized the potential for further upside in bitcoin and pointed out that although this skew is large, it is still lower than the level of around 7 points reached in early 2024, "historically, this indicator is at the 62nd percentile, suggesting there may be more upside potential." The implied volatility of bitcoin options spiked before the US election, but as the election-driven hedging activity has gradually subsided, the volatility has dropped to a more neutral level. Ostrovskis noted: "The 30-day at-the-money implied volatility is currently at the 30th percentile, and as the spot price of bitcoin enters a new price discovery phase, some traders see this as an opportunity to buy 'cheap' options." (The Block)