From BigGo Finance · BigGo Finance · · 1m 10s
Bitcoin Options Pay 9.2-Point Volatility Premium Ahead of Fed
Bitcoin traders pay 9.2-point volatility premium as Fed decision nears.
In brief
Bitcoin traders pay 9.2-point volatility premium as Fed decision nears. Bitcoin options traders pay 9.2 percentage points more in volatility than realized moves ahead of Federal Reserve policy decision. Originally reported by BigGo Finance.
Volatility Premium
Bitcoin's seven-day implied volatility stood 9.2 percentage points above realized volatility in a Laevitas snapshot dated October 26.
Options Coverage
Seven-day contracts span the Fed meeting and Deribit's open interest is concentrated in short-dated strikes around macro events.
Volatility Crush Risk
Buyers face volatility crush once Fed decision is known as premiums deflate faster than directional gains.
On-Chain Outflow
14,942 BTC left exchanges on October 27, the largest outflow in five weeks.
Bitcoin Price Ahead
Bitcoin traded near $80,467 with a 0.08% drop over 24 hours.
Max-Pain Level
Deribit's October 30 expiry has a max-pain level of $78,000.
Volatility Impact
Elevated implied volatility raises hedging costs for institutions holding Bitcoin through structured products.
Event Timeline
Fed decision lands Wednesday, inflation report Thursday, and options expiry Friday.
What it means
Bitcoin options traders pay 9.2 percentage points more in volatility than realized moves ahead of Federal Reserve policy decision.
