Deribit Extreme Put Skew

I am watching Deribit, and 8000P expiring in 11 1/2 hours is 0.0005 bid for 100 contracts. This just ticked to be 200% vol. While we've seen these levels back in March, that was then. Either someone is really nervous about almost 1300 point drop, or forgot that they have an active order and went to sleep :)
And ... it did not last too long, I think someone was also watching this strike vol creeping up and as I was writing the post lifted all bids on the line.

Update: 7.5 hours left, and buyer is back with 600 contract bid at 250% vol. What is going on? Does someone knows something others don't?  Is someone forced to hedge margin? There certainly not many sellers left.

Update: And the contracts traded; markets @ 0.0005 x 38
Final update: Expired far far otm. 
at

1 comment:

  1. naveen7/14/2020

    Hi. Great comment. I don’t have all the answers. My thoughts are as follows:
    1) If Feb or Dec 2018 caused massive losses then… you traded too big and too aggressively.
    Many people (not me) actually made money in those months.
    2) I don’t think there’s any other way to trade than to pick your spots and be patient.
    You’re also reducing risk by being patient.
    I trade much less frequently than I used to, yet my results are the same (and I have less stress).
    If you’d like to discuss, you’re welcome to book a call https://beststockstrategy.thrivecart.com/30-minute-call/
    or take the alerts at
    https://beststockstrategy.com/memberships/

    ReplyDelete

Subscribe to: Post Comments (Atom)

Weekly market report

Wall st delivered a mixed bag of news with VIX, VNKY, and VSTOXX and their underlying markets almost unchanged. VXD - volatility index based...

  • Simple Trick to Convert Volatility
    As I am sure all of you know Russia has began a full scale war against my home country Ukraine. Please make no mistake - Putin's goal ...
  • Intuitive Understanding Of VIX Formula
    Many investors are looking at VIX and VSTOXX indexes as a leading indicators of volatility in equity markets, however many are confused by t...
  • DBCVIX Index
    Deutsche Bank Currency Volatility Index was developed to provide an implied volatility benchmark for major currency markets. The index is d...