@Amberdataio recently published a report covering four years' worth of data on crypto vol dynamic and environment.🤯

https://twitter.com/Amberdataio/status/1618379639365439494

Authors:
@SinclairEuan
@PelionCap
@samchepal
@Gravity5ucks
Greg Magadini of Amberdata

Here are some interesting takeaways🧵 👇

/1 The vol term structure is in contango 77.5% of the time.

Contango is where implied vols (IV) increase as we go further out in time as illustrated by an upward-sloping vol curve. It is usually during periods of normalcy.

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The lessons of legendary investor Seth Klarman from the Global Financial Crisis in 2009 remain relevant today.

Here are 15 bite-sized musings to away from 2022 in #Crypto.

Enjoy 👇 🧵

#Web3 #DeFi #NFT #Investing #Markets 1. Things that have never happened before are bound to occur with some regularity. Always prepare for the unexpected.

That includes stress-testing your portfolio for the worst possible outcome. 🦢

Crypto #options must overcome a massive demand gap for it to be a meaningful on-chain sector, and we are nowhere near there.

Here is a simple mental model to ponder over the demand for crypto options. 🧵 👇

/1 #Options have traditionally played second fiddle to the spot and futures market in crypto.

However, we are witnessing an increase in interest in options lately as protocols like @dopex_io @ribbonfinance @lyrafinance @opyn_ @PremiaFinance are gaining traction within CT.

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Event Trading: Part 2

The Tales of Volatility.

Got the direction right but still lost money on your options? Here is what you need to know about volatility.

/1 Implied volatility is one of the main parameters for pricing an option.

High IV = High Option Price
Low IV = Low Option Price

Note that high IV doesn't mean expensive, and vice versa, low IV doesn't mean cheap.

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