Glassnode: Options trading is cooling down, implied volatility (IV) is falling, but the positive 25-day skewness indicates market caution regarding a downside.

According to Foresight News , data from Glassnode shows that options trading activity has cooled over the past month. A significant decrease in fund flows typically indicates weakening market confidence in upside prospects, while demand for put protection remains. Implied volatility (IV) has declined across the entire yield curve, suggesting reduced demand for short-term hedging and upside leverage. Currently, at-the-money option implied volatility across all maturities is approximately 44%, down more than 10 volatility points from recent highs. The 25-day skewness (put implied volatility minus call implied volatility) remains positive, meaning put options are still priced higher than call options. This suggests the market remains wary of downside risks, and the current skewness pattern is inconsistent with typical pre-breakout skewness patterns.