[8.27 hedging strategy sharing, strong bullish sentiment in the US stock market, the cryptocurrency circle maintained volatility, and the implied volatility fell to a historical low]
Last night, the US stock sector rotated, the Dow Jones closed up 0.18%, setting a record high, the S&P fell 0.3%, and the Nasdaq fell 0.85%. Pinduoduo, a Chinese stock, fell 28.5%. The seven sisters of technology stocks also fell across the board.
Affected by this, both Bitcoin and Ethereum retreated. It is worth mentioning that the implied volatility of Bitcoin has dropped rapidly and has entered a historical low.
Bitcoin ETF had a net inflow of 200 million yesterday, and Ethereum ETF had a net outflow of 13 million. It can be seen that the market's bullish sentiment on Bitcoin has begun to heat up, which is confirmed by the downward trend of implied volatility.
From a logical analysis, market traders should have restored their confidence in Bitcoin trading in view of the expected September interest rate cut, which is beneficial to risky assets. The downward volatility of Bitcoin has also laid a good price foundation for buyers to enter the market. Sellers need to beware of the huge fluctuations in Bitcoin prices and guard against extreme market risks.
From the perspective of option response:
It is recommended to ambush forward bull spread strategy or ratio spread strategy when volatility is low and option prices are cheap, waiting for the rise in volatility and the riot of gamma.
For double sell positions, it is recommended to roll over when the profit exceeds 50%, and open a position one standard deviation away from the forward. At this time, leaving more room for growth is more cost-effective than collecting more premiums.
In terms of pairs trade, yesterday in Binance Square, a hedging combination of long sol and short ton was prompted, and the profit was good this morning.
The logic is that the negative speculation of ton will continue, while sol will benefit from the interest rate cut fomo sentiment and will usher in a wave of repair rebound.
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