Bitcoin Volatility Looks Cheap Before Massive Options Expiry

Bitcoin volatility is cheap heading into Friday's $10.5 billion quarterly options expiry, according to Deribit.

The exchange's bitcoin volatility index, DVOL, is trading at 41.5%, well below February's peak of 90% but not as low as May's lows.

Cheap volatility means options are cheaper to buy, and traders often bet on volatility when it appears cheap relative to its key averages.

Deribit's Jean-David Péquignot said call spreads remain attractive for anyone wanting recovery exposure into the post-quarterly reset, and now look even better on a relative-vol basis since call spread longs are buying the cheaper wing of a skew that is leaning the other way.