Analysis: BTC, ETH Option Implied Volatility Surges

IconCryptoNewsTerminal Staff05 Jul, 2024

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Analysis: BTC, ETH Option Implied Volatility Surges

Major crypto put option Implied Volatility (IV) has increased substantially since the crypto market selloff in early July, according to crypto options analytics firm, Greeks.Live. Generally, traders will buy put options to protect against a price decrease and buy call options to benefit from a price increase. Options include an expiration date, so the value of the Option decays as the expiration date approaches; therefore, it is usually better to buy options with a further-out expiration date. With clarity on ETH spot ETF approval expected soon, the Macro researcher for Greeks.Live, Adam, suggests that "For value buyers, it might be better to buy end-of-month call options" as opposed to put options at this particular juncture.

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