# Options Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Options", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Crypto Derivatives Risk Appetite Plunges As ETF Outflows Hit Bitcoin

Crypto derivatives traders have significantly reduced risk appetite following last week's near-20% Bitcoin sell-off, according to a Deribit Insights report using Block Scholes analytics. The proprietary Risk Appetite Index fell sharply below 0.05 as Bitcoin attempted to stabilize above $60,000. This pullback coincided with the longest streak of outflows from spot Bitcoin ETFs since their launch, reinforcing a cautious institutional sentiment. While Bitcoin's 25-delta options skew recovered from deeply bearish levels, it remained negative at nearly -9%, indicating traders still value downside protection more than upside calls. Concurrently, Ethereum funding rates have traded negative since June 5, signaling bearish positioning in perpetual swap markets. The report concludes that despite price consolidation, derivatives data shows professional traders remain in a defensive, cautious stance rather than signaling a confident return to bullish exposure. Key indicators for a shift would be a recovery in Bitcoin ETF inflows and a normalization of the options skew and ETH funding rates.

bitcoinist06/13 00:37

Crypto Derivatives Risk Appetite Plunges As ETF Outflows Hit Bitcoin

bitcoinist06/13 00:37

Bitcoin Options Traders Hedge For More Downside As Deribit Warns Of Market Weakness

Bitcoin options traders are adopting a defensive stance amid market weakness, according to a Deribit Insights analysis. Key indicators show active hedging against further downside, including net put buying and call selling in BTC options, alongside a negative volatility risk premium and bearish short-dated skew. The report warns that a failure of Bitcoin's current support near $60,000 could lead to a test of $50,000. Ethereum has also seen elevated risk, with realized volatility spiking and a critical support level at $1,520. A break below could target $1,200. While not guaranteeing further declines, the options market data reflects heightened near-term caution and risk management by traders as they monitor these key support levels.

bitcoinist06/12 18:50

Bitcoin Options Traders Hedge For More Downside As Deribit Warns Of Market Weakness

bitcoinist06/12 18:50

Hedgeye’s New Bitcoin ETF Filing Targets One Of BTC’s Biggest Problems

Hedgeye has filed for a "Hedged Bitcoin" ETF, ticker HBIT, designed to offer Bitcoin exposure with reduced volatility. The fund would hold spot Bitcoin ETFs while using an options strategy, guided by Hedgeye's proprietary "Risk Range" signals, to manage downside risk. This approach aims to provide a smoother investment experience, particularly during market downturns, but the filing notes it may also limit upside potential during strong rallies. The strategy involves buying and writing both standardized and customizable FLEX options. The registration with the SEC is pending, and the proposal represents a growing trend of crypto products focused on altering Bitcoin's risk/return profile rather than simply tracking its price.

bitcoinist06/11 22:02

Hedgeye’s New Bitcoin ETF Filing Targets One Of BTC’s Biggest Problems

bitcoinist06/11 22:02

BIT Weekly Market Outlook: Highs Halved, Panic Doubled. The $60,000 Line is the Sole Lifeline

BIT Market Weekly: Halving from the Peak, Doubling Panic. $60K is the Sole Lifeline. The crypto market faces intense pressure from multiple fronts. MicroStrategy's symbolic sale of 32 BTC, its first since December 2022, shattered its "only accumulate" mantra, triggering panic and significant whale selling (~25,000 BTC). This pushed Bitcoin below MicroStrategy's average cost basis, causing unrealized losses. Bearish momentum intensified as spot Bitcoin ETFs saw a record 13-day net outflow streak, with $4.4 billion exiting, led by BlackRock's IBIT. Concurrently, macro risks mounted: sticky inflation dampened rate cut hopes, Mt.Gox wallet movements stoked sell-off fears, and renewed Middle East tensions added uncertainty. Derivatives data reveals a market at a critical juncture. Short-term options show extreme panic (negative Skew), but forward-term Skew has turned positive, signaling institutional expectations for a recovery in 3-6 months. Most notably, institutional activity shifted from defensive hedging to opportunistic bottom-fishing. They are selling puts and buying calls around the $60,000 level, effectively using options to establish controlled long positions. The $60,000 level is now the core battleground, hosting the largest concentration of put options open interest. It represents a binary outcome for the market. Holding above it could provide a base for stabilization, while a break below risks a swift decline toward the next major support at $55,000. Given the high uncertainty ahead of key CPI data and the FOMC meeting, the primary recommendation is risk management via Collar strategies to cap downside. For accumulation, structured products like DCPs or Bullish Seagulls can be deployed in batches near $60,000, mimicking institutional "selling puts to accumulate" logic. While volatility selling appears attractive as Implied Volatility shows topping signals, it's advised only with defined-risk spreads until $60,000 support is confirmed. Current levels are unsuitable for large-scale profit-taking; holding core positions with hedges is preferred.

marsbit06/10 07:26

BIT Weekly Market Outlook: Highs Halved, Panic Doubled. The $60,000 Line is the Sole Lifeline

marsbit06/10 07:26

Vitalik's Vision for the Next Evolution of On-Chain Finance: How to Reconstruct DeFi with an 'Options Mindset'?

Vitalik Buterin recently proposed a conceptual shift for DeFi: replacing traditional Collateralized Debt Positions (CDPs) and forced liquidations with an options-based mechanism. This aims to address key vulnerabilities in current DeFi lending. The traditional CDP model, foundational to protocols like MakerDAO and Aave, allows users to borrow against collateral but relies on real-time oracles and triggers sudden, mandatory liquidations during price volatility. This can cause cascading sell-offs, oracle manipulation risks, and significant MEV extraction, exacerbating market stress. Vitalik's alternative envisions splitting an asset like 1 ETH into two complementary components: one offering stable/index-like exposure and the other absorbing the opposite risk/reward. Instead of a hard liquidation threshold, a user's exposure to the target asset would gradually and smoothly deviate (following a near-quadratic curve) as the collateral price moves. The system would primarily depend on "slow oracles" for periodic settlement rather than instant price feeds. Key potential benefits include: the elimination of abrupt, forced liquidations; drastically reduced reliance on vulnerable real-time oracles; and inherent resistance to certain MEV exploits centered on liquidation auctions. The article posits that for Ethereum DeFi to maintain its relevance amid competition from faster, cheaper chains, it must compete on sophisticated financial engineering and robustness—not just transaction speed or yields. The core value proposition should shift towards offering users clearer, more manageable risk structures, greater autonomy, and resilience in extreme scenarios, moving DeFi from high-risk experimentation towards becoming reliable financial infrastructure.

marsbit06/09 09:09

Vitalik's Vision for the Next Evolution of On-Chain Finance: How to Reconstruct DeFi with an 'Options Mindset'?

marsbit06/09 09:09

Crypto.com Launches Fully Funded OTC Options for Institutional Traders

Crypto.com Exchange has launched Fully Funded Over-the-Counter (OTC) Options for institutional clients, including foundations and VIP traders. This new service provides a private, off-orderbook venue to execute custom European-style vanilla options, addressing issues like slippage and information leakage common in public markets. Key features include customizable tenors of up to three months, 100% collateralization by sellers to mitigate liquidation risk, and physical settlement upon expiration. The offering is highlighted by USD options for covered call strategies, instant quoting via dedicated Telegram/Slack channels, a secure Sales Portal for booking, and automated settlement based on exchange index prices.

TheNewsCrypto06/06 03:40

Crypto.com Launches Fully Funded OTC Options for Institutional Traders

TheNewsCrypto06/06 03:40

Crypto Market Plunges: Bitcoin Breaks Below $60k, Ethereum Drops Over 10%, Strategy Hunted by Short Sellers

Bitcoin experienced a severe sell-off, falling below $60,000 to its lowest point since October 2024, with weekly losses reaching 16%. The decline was triggered by Michael Saylor's MicroStrategy selling part of its Bitcoin holdings, which sparked hundreds of millions in forced liquidations. Stronger-than-expected U.S. jobs data then pushed Treasury yields higher, further pressuring risk assets like crypto. MicroStrategy's stock plummeted 24% for the week, its worst performance since late 2022, as bearish bets against the company surged. The sell-off was exacerbated by a shift of speculative capital towards AI and semiconductor stocks, as well as dimming prospects for key U.S. crypto legislation. Bitcoin's correlation with major stock indices has recently broken down, failing to rally alongside record-high equities. While Bitcoin ETFs saw a slight inflow after a record 13-day outflow streak, total assets under management have shrunk significantly. Despite the gloom, some, like Strive's CEO, view the drop to the 200-week moving average as a historic buying opportunity. Meanwhile, options markets show intense put buying on MicroStrategy, and its floating-rate preferred shares (STRC) have also plunged, reflecting heightened market risk perception towards Saylor's strategy amid a rising rate environment.

华尔街日报06/05 23:56

Crypto Market Plunges: Bitcoin Breaks Below $60k, Ethereum Drops Over 10%, Strategy Hunted by Short Sellers

华尔街日报06/05 23:56

Has Bitcoin's 'Rebound Ended', Officially Entering the Late Bear Market Phase?

**Title: Has Bitcoin's Rebound Ended, Entering the Late Bear Market Phase?** **Summary:** Bitcoin's price has declined by 13% this week, signaling a potential return to late-stage bear market conditions. The price fell to around $67k, positioned between the Realized Price and Realized Cap Weighted Average. For the first time since early 2022, the Short-Term Holder cost basis has dropped below this key average, confirming a hallmark of late-cycle bear markets. Profitability metrics have collapsed sharply. The 7-day average of the Realized Profit/Loss ratio plummeted from a local high of 3.16 to 0.29, mirroring the February panic sell-off. Critically, the 90-day average never breached the threshold of 2, indicating the recent rally to $82k was a bear market bounce, not a structural shift. Realized losses surged to $1.35 billion daily, with $770 million coming from Long-Term Holders selling at a loss. This accelerating redistribution of supply from weak to strong hands is a necessary but ongoing process for a market bottom. The rally stalled almost precisely at the aggregate cost basis (~$83k) of US spot Bitcoin ETF investors, turning that level into strong resistance and leaving the average ETF holder underwater again. Spot market flows have turned decisively negative, showing sellers are dominating order books despite the price drop. While a significant futures long liquidation event cleared over $400 million in leverage, providing a potential reset, sustained spot demand is yet to materialize. Options markets continue to price in higher future volatility (Implied Volatility) than recent price action (Realized Volatility) has shown, with a persistent skew towards put options, indicating ongoing demand for downside protection. In conclusion, multiple metrics point to a fragile market structure. Resistance at the ETF cost basis, accelerating realized losses, dominant spot selling, and cautious options pricing all suggest the bear market trend persists. A sustainable recovery likely requires a resurgence of spot demand, ETF holders returning to profit, and a clear reduction in selling pressure.

marsbit06/05 11:07

Has Bitcoin's 'Rebound Ended', Officially Entering the Late Bear Market Phase?

marsbit06/05 11:07

Bitcoin's 'Rally Ends,' Officially Entering the Later Stage of a Bear Market?

Bitcoin prices declined 13% this week, reversing the recent rebound and signaling a likely transition into the later stages of a bear market. Key on-chain metrics deteriorated, with the short-term holder cost basis falling below the Realized Price—a pattern last seen in early 2022, characteristic of bear market maturity. The rally to ~$82k proved to be a bear market bounce, as evidenced by the 90-day realized profit/loss ratio failing to sustain above the bullish threshold of 2. Daily realized losses surged to $1.35B, including significant selling from long-term holders who accumulated near cycle tops, indicating ongoing supply redistribution. Price was rejected almost precisely at the aggregate US spot ETF cost basis of ~$83k, turning that level into resistance and leaving the average ETF investor underwater again. Spot market selling pressure intensified, with the 7-day volume delta turning significantly negative to its weakest level since February. While a major long liquidation event cleared over $400M in leverage, spot demand has not yet stepped in to absorb the resulting supply. Options markets continue pricing in higher future volatility (elevated volatility risk premium) and maintain a skew toward put options, reflecting persistent demand for downside protection, though not yet panic. Overall, market structure remains fragile. Sustained recovery likely requires a reclaim of the ETF cost basis, a shift back to positive spot demand, and a slowdown in realized loss-taking. Until then, the market risks further downside or extended consolidation within the broader bear trend.

Foresight News06/05 08:33

Bitcoin's 'Rally Ends,' Officially Entering the Later Stage of a Bear Market?

Foresight News06/05 08:33

Breaking the Curse of DeFi Cascading Liquidations, Vitalik Proposes a New Solution

**Vitalik Buterin Proposes New DeFi Design to Eliminate Forced Liquidations** Ethereum co-founder Vitalik Buterin has published a proposal for a new decentralized finance (DeFi) architecture aimed at removing the automatic liquidation mechanisms prevalent in current lending protocols. The core idea involves creating synthetic assets using options as building blocks, fundamentally avoiding the抵押借贷结构 that triggers forced sell-offs. The proposal responds to a recurring flaw in DeFi: during sharp market downturns, mass自动清算 of under-collateralized positions can exacerbate price declines, creating systemic selling pressure and market instability, as evidenced by recent crypto market volatility. Buterin's model would split an asset like 1 ETH into two option-like derivatives, P and N, pegged to a price index with a set strike price and expiration. At expiry, an oracle determines the settlement price to allocate the underlying ETH between P and N holders. This design eliminates the "cliff" of instant liquidation. Instead, a position's value would gradually drift from its target peg if not actively rebalanced by the user, transferring the rebalancing decision from the protocol to the user or automated tools. A key advantage is the reduced reliance on high-frequency, real-time oracle price feeds, which are vulnerable to manipulation and errors in current systems. The delayed settlement in the options model allows for more robust, fault-tolerant oracle designs. However, significant challenges remain for practical adoption. High transaction costs (slippage) from frequent rebalancing on automated market makers (AMMs) could erode user funds. The model may not be suitable for stablecoins requiring a strict 1:1 dollar peg, as it inherently allows for value drift. Success would depend on developing new liquidity provisioning models and deep markets for these synthetic assets. The proposal represents a fundamental rethinking of DeFi risk management, challenging the industry to explore alternatives to被动集中平仓 rather than merely optimizing existing liquidation processes. It remains a theoretical framework awaiting implementation and testing by development teams.

foresightnews_api06/05 04:31

Breaking the Curse of DeFi Cascading Liquidations, Vitalik Proposes a New Solution