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Open Interest On Bitcoin Options Contracts Reaches All-Time High Of $6.5 Billion
Summary: Open interest on Bitcoin options contracts have reached an all-time high at $6.5 billion following Bitcoin's breach of the $20,000 price level, as reported by Cointelegraph. The $6.5 billion number represented a three-fold increase from open interest levels 90 days ago, an indicator that the market has grown significantly. The increase in open interest signals ...
Open interest on Bitcoin options contracts have reached an all-time high at $6.5 billion following Bitcoin's breach of the $20,000 price level, as reported by Cointelegraph.
The $6.5 billion number represented a three-fold increase from open interest levels 90 days ago, an indicator that the market has grown significantly. The increase in open interest signals greater interest in the market, but does not tell us whether investors are bullish or bearish since both call and put options are factored into the figure.
When looking at the options market, the 30% to 20% delta skew is the most helpful metric. A 10% delta skew indicates that call options are trading at a premium to the more bearish/neutral put options. Meanwhile, a negative skew translates to a higher cost of downside protection, indicating bearishness. The delta skew has moved from 10 to 15 points indicating investors are optimistic, but not overly so.
By Emily Mason
Tags: Bitcoin,BTC,Open Interest,Options,Options Contracts
Link: Open Interest On Bitcoin Options Contracts Reaches All-Time High Of $6.5 Billion [Copy]
