are trading at a discount to historical standards, offering a rare opportunity for bulls to snap up downside hedges at cheap valuations.It’s a sign that 25-delta put options listed at strikes below bitcoin’s current market price are undervalued in volatility terms relative to those at strikes near the spot price.
A put option gives the purchaser the right but not the obligation to sell the underlying asset at a predetermined price on or before a specific date. A put buyer is implicitly bearish on the market, while a call buyer is bullish. Traders with bullish exposure in the spot/futures market often buy puts as a hedge against potential price correction.The latest discount comes as traders scramble to add bullish exposure through calls amid bitcoin’s price rally.
Source: Digital Coin News (digitalcoinnews.net)
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