Greeks.live: Today's largest options block trade is a block trade of Bitcoin bearish calendar spread

PANews reported on April 3rd, according to Greeks.live macro researcher Adam's cryptocurrency options block trade daily report, today's largest option block trade was a Bitcoin bearish calendar spread with a scale of 635 BTC groups and a nominal value of $110 million. This is a typical institutional volatility curve transaction that profits from the difference in near-end and far-end option volatilities and different time decay characteristics. Both terms are relatively short-term. Traders expect: short-term volatility is overestimated; Bitcoin price will not significantly fall below 75,000 before the near-month expiration; the volatility surface will tend to flatten.

Today's other large trades were also mostly concentrated in the short term, with this week's spreads occupying most of them. More often it was market makers adjusting their risk exposure, with actual premiums involved being small. This is also a common phenomenon after quarterly delivery - market makers operate more cautiously which provides convenience for us to identify institutional views through observing block trades.