August 5 Crypto Options Market Research Report

US stocks are in panic, cryptocurrencies are in a serious short-term panic, how can options hedge risks?

The limited-time scholarship for private classes has ended, and the opening ceremony will be held this weekend.

Coincall (No. 1 U-based alt options exchange, trading popular alt options such as Sol, Ton, and Ordi)

I. Core Views

1- Since the U.S. stock market hyped up the economic recession last week, cryptocurrencies have been falling over the weekend. If the spot position is too heavy, the panic sentiment is serious in the short term, and it is not cost-effective to buy short-term put options. You can choose a suitable strike price contract in September;

2- ETH's trend has continued to weaken relative to BTC and sol in recent days. My personal long eth +delta position has been closed at the weekend;

3- On the fundamental research of L1 sol vs eth, a YouTube video was uploaded over the weekend, extracting data from the Defi research report to evaluate the two L1 public chains. Portal: https://youtu.be/OA0xoJLte1k?si=fz3Wwf18iH5AwcuI…

4- I wrote a short essay in Weekend Planet, "The U.S. Treasury Bull Market Has Begun (August 3 - U.S. Treasury Article 11)", which contains overall thoughts on several macro markets. You can read the full article. This week, I am relatively pessimistic about the crypto market. I have closed all my sell put positions this week to prevent Gamma risk;

5- The copycat underlying options continue to roll sol's doomsday options, and ordi cycle options continue to use covered call strategies.

Summary: The overall market is weak this week. Players with heavy spot positions can buy forward put options to hedge their positions.

2. Bulk option trading

BTC bulk purchases totaling about 500 put option positions this Friday

buy BTC-9AUG24-61000-P

buy BTC-9AUG24-59000-P

ETH bulk purchases of month-end call options and this week's put options, 6,500 and 5,000 positions respectively

buy ETH-9AUG24-2800-P

3. Macro market

US stocks:

Last week, the focus was on the accelerated realization of the US dollar in the direction of interest rate cuts. Because the Fed's actions in the past cycle were "slow", the market had already fully priced in the US dollar's interest rate cut expectations. Now that the Fed has finally accelerated its dovish stance due to the reality of falling US inflation and the economy beginning to be under pressure, the market will price it based on the logic of "the shoe has landed".

A-shares:

Last week, the inflow and outflow of Northbound funds are worth reviewing:

① On Wednesday, Northbound funds inflowed nearly 20 billion, and the big sun bottomed out and attacked;

② On Thursday, Northbound funds outflowed more than 5 billion, and the market fluctuated slightly and fell;