The cryptocurrency market experienced a significant surge, catching bearish options traders off guard. Key support and resistance levels are identified at 115,000 and between 127,000 to 180,000, respectively. However, traders remain divided on whether this rally will sustain or reverse quickly.
In a dramatic turn, options sellers faced substantial losses due to an unexpected three-standard deviation move, despite market volatility being priced at just 40%. This has led many options sellers to shift strategies, opting to buy put options and sell call options. The market's long-to-short ratio dropped from 2 to below 1 within a week, while open interest remains high, indicating potential for further short squeezes.
Crypto Options Sellers Hit Hard by Unexpected Market Surge
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