ChainCatcher news, according to CryptoSlate, the 25 Delta Skew in the Bitcoin options market has fluctuated greatly in the past few months. The weekly 25 Delta Skew indicator on Deribit tracks the difference in implied volatility between 25 Delta put options and call options, and the indicator fluctuates greatly. Since January, the deviation has ranged from a low of around -15% to a high of more than 15%, highlighting the changing sentiment of option traders and the market's view on risk.
The latest data shows that skewness has risen sharply due to Bitcoin’s current correction. Such fluctuations usually reflect traders’ shifts between bearish and bullish outlooks.
It is reported that 25 Delta Skew refers to a put option with a delta of -25% and a call option with a delta of 25% to demonstrate that there is a difference in the market's view on implied volatility. The calculation method of 25 Delta Skew is the difference between the implied volatility of a 25 delta put option and the implied volatility of a 25 delta call option, normalized by the ATM implied volatility. The indicator focuses on option contracts that expire in 1 week.
