QCP Capital: A large amount of put option selling occurred after the release of non-farm data

According to TechFlow, QCP Capital posted on its official channel that the initial market reaction after the release of the non-farm payrolls data yesterday was positive, driving up risk assets. But as the market began to digest the expectation of a 50 basis point rate cut in September, the bullish sentiment took a drastic turn. After the release of the non-farm payrolls data, the market expected a 50 basis point rate cut with a probability of 55%. But as of this morning, the market expected a 25 basis point rate cut to have a probability of 70%, and a 50 basis point rate cut to have a probability of 30%.

Even as cryptocurrencies moved lower, the options market was relatively calm. We even saw heavy put option selling throughout the trading session. We observed that front-end volatility was declining as the spot consolidated over the weekend.