When it comes to crypto options trading, one key indicator to watch is the implied probability distribution. Whether you’re looking at MicroStrategy (MSTR), Coinbase (COIN), or Deribit’s BTC options, the implied probability distribution of different expiration dates can provide valuable insights.
According to Griffin Ardern, head of options trading and research at BloFin, a crypto financial platform, there has been a noticeable left shift in the implied probability distribution. In a recent Telegram chat with CoinDesk, Ardern explained, “It seems that traders are collectively indicating that the prices of BTC and altcoins are still high, and they anticipate more pullbacks in the near future.”
This shift in implied probability distribution suggests that market participants are expecting a potential downturn in prices. By analyzing this data, traders can better understand market sentiment and make informed decisions when trading crypto options.
