Two recorded trades in a Nov. 27 Bitcoin (BTC) put with a $70,000 strike show its BTC-denominated premium rising 127.6% as Deribit’s index moved below the strike, while reported implied volatility fell.
The contract traded at 0.0145 BTC at 6:51 a.m. ET Nov. 12 (11:51:01 UTC) and 0.033 BTC at 5:15 a.m. ET Nov. 13 (10:15:10 UTC), an interval of 22 hours, 24 minutes and 9 seconds. The increase is calculated from those two executions and does not establish the price other buyers could have obtained.
At the earlier trade, Deribit’s BTC index was $72,805.71, above the strike. At the later trade, it was $69,320.08, below the strike. Reported trade implied volatility declined from 38.97% to 37.67%.
Converted at the index price for each trade, the premiums were about $1,055.68 and $2,287.56, a calculated 116.7% increase in dollar terms. Because the conversions use different index prices, they are not matched dollar quotes.
A put gives its buyer the right to sell one BTC at the strike under the contract’s terms. The premium and fees affect the net proceeds, so the $70,000 strike does not guarantee a $70,000 net sale price. The two trades do not identify what drove the premium change or establish a broader rise in demand for hedges. The contract expires Nov. 27.
Enna Lee
Enna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to [email protected].
