IBIT options price trading more calmly after Bitcoin rebound
Options on BlackRock’s iShares Bitcoin Trust (IBIT) are pricing smaller swings than the fund experienced during Bitcoin’s recent rebound, according to Saxo Bank.
IBIT’s implied volatility stood at 37.4%, compared with realized volatility of 45.5% over the 20 trading sessions through Tuesday, Saxo investment and options strategist Koen Hoorelbeke wrote Thursday.
Based on Wednesday’s data, Hoorelbeke’s analysis put IBIT’s implied volatility rank at 11.9, placing the measure near the bottom of its 12-month range.
“In our view the options market appears to be pricing calmer conditions than the recent past produced,” Hoorelbeke wrote.
Implied volatility reflects expectations of future price swings embedded in options prices, while realized volatility measures past movements.
Hoorelbeke identified resistance around $87,000, where Bitcoin’s advance stalled on Sept. 21, and support between $76,000 and $77,000.
Bitcoin traded at $84,751 at the time of writing, up 1.6% in the last 24 hours, according to CoinGecko.
Related: Bitcoin ETF inflows slow to $191M as six-day streak reaches $2.8B
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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