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

Jake Ostrovskis, an over-the-counter trader at Wintermute, said bitcoin options traders are paying a large premium for call options, indicating growing investor optimism about future price increases for bitcoin. The 1-month 25-delta bias for bitcoin options currently favors call options by about 3.3 points. Ostrovskis said the bias suggests derivatives traders are positioning for potential price increases for bitcoin, and “this premium is a clear sign of bullish sentiment in the market.” Ostrovskis highlighted the potential for further gains for bitcoin, noting that while the bias is large, it is still below the level of about 7 points reached in early 2024, “historically, this indicator is at the 62nd percentile, suggesting there could be more upside ahead.” The implied volatility of bitcoin options spiked ahead of the U.S. election, but has fallen to more neutral levels as election-driven hedging activity fades. Ostrovskis noted: “30-day at-the-money implied volatility is currently in the 30th percentile, and as the Bitcoin spot price enters a new price discovery phase, some traders see this as an opportunity to buy ‘cheap’ options.” (The Block)