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Posted on August 28, 2023

BTC Implied Volatility Surface

Hedging August 2023 Anomalies

From August 14th to 27th, 2023, the BTC implied volatility surface showcased overall stability, with one significant exception: the crash on August 17th at 22:00 UTC. During this crash, an anomaly emerged, with surge in at-the-money (ATM) volatility projections, coupled with a noticeable liquidity scarcity. Remarkably, high ATM endured in next five days, maintaining levels within the range of 40 to 50. When the market crashes or has a sharp and sudden correction, most retail traders lose money. It is important to hedge with options for market shocks while you can - so you profit from large market events.

  • #BTC
  • # Cryptocurrency
  • # Volatility
  • # Awareness
  • # Hedging
  • # VolatilitySurface