Greeks.Live: The implied volatility of short-term options has significantly increased, and short-term put options can be purchased for hedging in unfavorable market conditions

ChainCatcher news, Greeks.Live analyst Adam posted on social media that due to the weakness in the US stock market, BTC fell below $91,000 this week, hitting a nearly one-month low. Market panic is rising, and the implied volatility (IV) of short-term options has significantly increased. The benefits brought by Trump's upcoming presidency are mainly reflected in the long term, while the Federal Reserve's January meeting is expected to maintain interest rates unchanged.

Greeks.live suggests that investors pay attention to BTC price trends and ETF capital flows. In unfavorable market conditions, purchasing short-term put options for hedging is advisable, while in a recovering market, positioning in monthly call options is recommended.

Greeks.live data shows that this round of options expiration involves 19,000 BTC options and 141,000 ETH options, with notional values of $1.81 billion and $460 million, respectively. The Put Call Ratio for BTC options is 0.65, with the maximum pain point at $97,000; the Put Call Ratio for ETH options is 0.48, with the maximum pain point at $3,450.