Selling higher strike, out-of-the-money bitcoin call options is favored over cash and carry arbitrage due to recent market conditions, offering additional yield while reducing risk exposure.
Selling $80,000 BTC call options expiring in May is popular among traders, allowing them to collect premiums if Bitcoin remains below that price, but risking losses if it surges above.
Renewed demand for selling bitcoin options is indicated by the decrease in Deribit's implied volatility index DVOL, influenced by options demand, with increased writing preference leading to lower volatility.
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