Volatility Weekly
Volatility Update, 3/24/23
BitOoda Volatility Report, 3/24/23
Michael Tauckus
Markets were near unchanged this morning, with BTC at $27844 and ETH at $1785. In what was another volatile week, the two leading digital assets continue to march higher. Of particular note is the strength of BTC, which is up about 40% from its low print on March 10th. Many are viewing this as a rotation back into riskier assets or a reaction to the idea that the Fed may begin to cut rates at some point in 2023. Some may be viewing BTC as a protection against the ongoing crisis of confidence in the global banking system.
Whatever the reason, the rally has resulted in a marked increase in digital asset derivatives volumes. Open interest in options has ballooned to all time highs with particular demand for upside calls. This has moved skew significantly in the past two weeks. Volatility has rallied pretty well and maintained a high level for the better part of the past two weeks as the markets put in YTD highs early Wednesday. However, we saw vol finally take a breather following the Fed announcement of a 25 bp rise in rates as the markets pulled back in afternoon trading.
This morning finds vols once again firming across the board by about 3% from Thursday as futures try to hold the $28,000 and $1,800 levels, respectively.
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Markets were near unchanged this morning, with BTC at $27844 and ETH at $1785. In what was another volatile week, the two leading digital assets continue to march higher. Of particular note is the strength of BTC, which is up about 40% from its low print on March 10th. Many are viewing this as a rotation back into riskier assets or a reaction to the idea that the Fed may begin to cut rates at some point in 2023. Some may be viewing BTC as a protection against the ongoing crisis of confidence in the global banking system.
Whatever the reason, the rally has resulted in a marked increase in digital asset derivatives volumes. Open interest in options has ballooned to all time highs with particular demand for upside calls. This has moved skew significantly in the past two weeks. Volatility has rallied pretty well and maintained a high level for the better part of the past two weeks as the markets put in YTD highs early Wednesday. However, we saw vol finally take a breather following the Fed announcement of a 25 bp rise in rates as the markets pulled back in afternoon trading.
This morning finds vols once again firming across the board by about 3% from Thursday as futures try to hold the $28,000 and $1,800 levels, respectively.
SEC issues investor alert over crypto investments (Link)
Coinbase’s stock tumbles after SEC warning, Regeneron shares rally, and other stocks on the move (Link)
‘Red alert recession signals.’ Gundlach expects the Fed to cut rates substantially ‘soon.’ (Link)
Deutsche Bank shares slide 11% after sudden spike in the cost of insuring against its default (Link)
A Looming Court Decision Has Huge Ramifications for Coinbase (Link)
Nvidia Doubling Down on China Market in the Face of Tightened US Export Controls (Link)
Do Kwon Arrested in Montenegro, Says Country’s Minister of Interior (Link)
Coinbase moves to on-chain staking for Tezos, Cosmos, Solana, and Cardano (Link)
Bitcoin Drops After Binance Pauses Spot Trading, Deposits And Withdrawals (Link)
Airdrop claims help Arbitrum process twice Ethereum’s transaction in 24 hours (Link)
Purpose
This research is only for the clients of BitOoda. This research is not intended to constitute an offer, solicitation, or invitation for any securities and may not be distributed into jurisdictions where it is unlawful to do so. For additional disclosures and information, please contact a BitOoda representative at info@bitooda.io.
Analyst Certification
Michael Tauckus, the author of this report hereby certifies that all of the views expressed in this report accurately reflect his personal views, which have not been influenced by considerations of the firm’s business or client relationships.
Conflicts of Interest
This research contains the views, opinions, and recommendations of BitOoda. This report is intended for research and educational purposes only. We are not compensated in any way based upon any specific view or recommendation.
General Disclosures
Any information (“Information”)provided by BitOoda Holdings, Inc., BitOoda Advisory LLC, BitOoda Digital, LLC, BitOoda Technologies, LLC or Ooda Commodities, LLC and its affiliated or related companies (collectively, “BitOoda”), either in this publication or document, in any other communication, or on or throughhttp://www.bitooda.io/,including any information regarding proposed transactions or trading strategies, is for informational purposes only and is provided without charge. BitOoda is not and does not act as a fiduciary or adviser, or in any similar capacity, in providing the Information, and the Information may not be relied upon as investment, financial, legal, tax, regulatory, or any other type of advice. The Information is being distributed as part of BitOoda’s sales and marketing efforts as an introducing broker and is incidental to its business as such. BitOoda seeks to earn execution fees when its clients execute transactions using its brokerage services. BitOoda makes no representations or warranties(express or implied) regarding, nor shall it have any responsibility or liability for the accuracy, adequacy, timeliness or completeness of, the Information, and no representation is made or is to be implied that the Information will remain unchanged. BitOoda undertakes no duty to amend, correct, update, or otherwise supplement the Information.
The Information has not been prepared or tailored to address, and may not be suitable or appropriate for the particular financial needs, circumstances or requirements of any person, and it should not be the basis for making any investment or transaction decision. The Information is not a recommendation to engage in any transaction. The digital asset industry is subject to a range of inherent risks, including but not limited to: price volatility, limited liquidity, limited and incomplete information regarding certain instruments, products, or digital assets, and a still emerging and evolving regulatory environment. The past performance of any instruments, products or digital assets addressed in the Information is not a guide to future performance, nor is it a reliable indicator of future results or performance.
Ooda Commodities, LLC is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets.
BitOoda Technologies, LLC is a member of FINRA.
“BitOoda”, “BitOoda Difficulty”,“BitOoda Hash”, “BitOoda Compute”, and the BitOoda logo are trademarks of BitOoda Holdings, Inc.
Copyright 2023 BitOoda Holdings,Inc. All rights reserved. No part of this material may be reprinted, redistributed, or sold without prior written consent of BitOoda.
Markets were near unchanged this morning, with BTC at $27844 and ETH at $1785. In what was another volatile week, the two leading digital assets continue to march higher. Of particular note is the strength of BTC, which is up about 40% from its low print on March 10th. Many are viewing this as a rotation back into riskier assets or a reaction to the idea that the Fed may begin to cut rates at some point in 2023. Some may be viewing BTC as a protection against the ongoing crisis of confidence in the global banking system.
Whatever the reason, the rally has resulted in a marked increase in digital asset derivatives volumes. Open interest in options has ballooned to all time highs with particular demand for upside calls. This has moved skew significantly in the past two weeks. Volatility has rallied pretty well and maintained a high level for the better part of the past two weeks as the markets put in YTD highs early Wednesday. However, we saw vol finally take a breather following the Fed announcement of a 25 bp rise in rates as the markets pulled back in afternoon trading.
This morning finds vols once again firming across the board by about 3% from Thursday as futures try to hold the $28,000 and $1,800 levels, respectively.
SEC issues investor alert over crypto investments (Link)
Coinbase’s stock tumbles after SEC warning, Regeneron shares rally, and other stocks on the move (Link)
‘Red alert recession signals.’ Gundlach expects the Fed to cut rates substantially ‘soon.’ (Link)
Deutsche Bank shares slide 11% after sudden spike in the cost of insuring against its default (Link)
A Looming Court Decision Has Huge Ramifications for Coinbase (Link)
Nvidia Doubling Down on China Market in the Face of Tightened US Export Controls (Link)
Do Kwon Arrested in Montenegro, Says Country’s Minister of Interior (Link)
Coinbase moves to on-chain staking for Tezos, Cosmos, Solana, and Cardano (Link)
Bitcoin Drops After Binance Pauses Spot Trading, Deposits And Withdrawals (Link)
Airdrop claims help Arbitrum process twice Ethereum’s transaction in 24 hours (Link)
Purpose
This research is only for the clients of BitOoda. This research is not intended to constitute an offer, solicitation, or invitation for any securities and may not be distributed into jurisdictions where it is unlawful to do so. For additional disclosures and information, please contact a BitOoda representative at info@bitooda.io.
Analyst Certification
Michael Tauckus, the author of this report hereby certifies that all of the views expressed in this report accurately reflect his personal views, which have not been influenced by considerations of the firm’s business or client relationships.
Conflicts of Interest
This research contains the views, opinions, and recommendations of BitOoda. This report is intended for research and educational purposes only. We are not compensated in any way based upon any specific view or recommendation.
General Disclosures
Any information (“Information”)provided by BitOoda Holdings, Inc., BitOoda Advisory LLC, BitOoda Digital, LLC, BitOoda Technologies, LLC or Ooda Commodities, LLC and its affiliated or related companies (collectively, “BitOoda”), either in this publication or document, in any other communication, or on or throughhttp://www.bitooda.io/,including any information regarding proposed transactions or trading strategies, is for informational purposes only and is provided without charge. BitOoda is not and does not act as a fiduciary or adviser, or in any similar capacity, in providing the Information, and the Information may not be relied upon as investment, financial, legal, tax, regulatory, or any other type of advice. The Information is being distributed as part of BitOoda’s sales and marketing efforts as an introducing broker and is incidental to its business as such. BitOoda seeks to earn execution fees when its clients execute transactions using its brokerage services. BitOoda makes no representations or warranties(express or implied) regarding, nor shall it have any responsibility or liability for the accuracy, adequacy, timeliness or completeness of, the Information, and no representation is made or is to be implied that the Information will remain unchanged. BitOoda undertakes no duty to amend, correct, update, or otherwise supplement the Information.
The Information has not been prepared or tailored to address, and may not be suitable or appropriate for the particular financial needs, circumstances or requirements of any person, and it should not be the basis for making any investment or transaction decision. The Information is not a recommendation to engage in any transaction. The digital asset industry is subject to a range of inherent risks, including but not limited to: price volatility, limited liquidity, limited and incomplete information regarding certain instruments, products, or digital assets, and a still emerging and evolving regulatory environment. The past performance of any instruments, products or digital assets addressed in the Information is not a guide to future performance, nor is it a reliable indicator of future results or performance.
Ooda Commodities, LLC is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets.
BitOoda Technologies, LLC is a member of FINRA.
“BitOoda”, “BitOoda Difficulty”,“BitOoda Hash”, “BitOoda Compute”, and the BitOoda logo are trademarks of BitOoda Holdings, Inc.
Copyright 2023 BitOoda Holdings,Inc. All rights reserved. No part of this material may be reprinted, redistributed, or sold without prior written consent of BitOoda.
Markets are higher again today with Bitcoin leading the charge, up 2.7% to $45,385 while ETH is lagging a bit, up 1.1% to $2,453. We’re seeing the oft-mentioned ETH call overwriter covering some short calls overnight into this morning, with ~25k Feb calls bought. This is a small part of the book, and we expect more buying from this entity as the market pushes up to avoid auto-liquidation