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IBIT…the Hottest Option on the Planet

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Manage episode 456213963 series 2516749
Content provided by Dean Curnutt. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Dean Curnutt or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

The subject at hand in this discussion is the unbelievable launch of options on IBIT, the bitcoin ETF. What I’d like to put forth is that the financial characteristics of the underlying asset – bitcoin - pave the way for IBIT options, already off to an amazing start, to become a critical industry risk management tool.
The unique risk characteristics of bitcoin and how they shape the option vol surface in IBIT will underpin the success of its options. Specifically, bitcoin has 3 financial characteristics that pave the way for tremendous option adoption. First, it is a high vol asset. Second, bitcoin exhibits a great deal of vol of vol. Bitcoin goes through sleepy periods and also those when the daily fluctuations are huge. And the third of the financial characteristics, perhaps the most important of them, is bitcoin’s nearly unmatched propensity for positive spot/vol correlation.
I am really bullish on this new and exciting options complex. I hope you enjoy this perspective and find it interesting. Be well.

  continue reading

224 episodes

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IBIT…the Hottest Option on the Planet

Alpha Exchange

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Manage episode 456213963 series 2516749
Content provided by Dean Curnutt. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Dean Curnutt or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

The subject at hand in this discussion is the unbelievable launch of options on IBIT, the bitcoin ETF. What I’d like to put forth is that the financial characteristics of the underlying asset – bitcoin - pave the way for IBIT options, already off to an amazing start, to become a critical industry risk management tool.
The unique risk characteristics of bitcoin and how they shape the option vol surface in IBIT will underpin the success of its options. Specifically, bitcoin has 3 financial characteristics that pave the way for tremendous option adoption. First, it is a high vol asset. Second, bitcoin exhibits a great deal of vol of vol. Bitcoin goes through sleepy periods and also those when the daily fluctuations are huge. And the third of the financial characteristics, perhaps the most important of them, is bitcoin’s nearly unmatched propensity for positive spot/vol correlation.
I am really bullish on this new and exciting options complex. I hope you enjoy this perspective and find it interesting. Be well.

  continue reading

224 episodes

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