IBIT Options Price Calm After Bitcoin Rebound
Options on BlackRock's iShares Bitcoin Trust (IBIT) are showing more calmness after the recent rebound of Bitcoin. According to Saxo Bank, IBIT's implied volatility stood at 37.4%, while its realized volatility over the past 20 trading sessions was 45.5%. This discrepancy suggests that the options market is pricing in smaller future price swings than what actually happened during the recent rally.
Koen Hoorelbeke, a Saxo investment and options strategist, analyzed IBIT's implied volatility rank, which came out at 11.9, placing it near the bottom of its 12-month range. This means that the market is expecting less turbulence in the future compared to what was experienced during Bitcoin's recent price action.
Hoorelbeke also identified key support and resistance levels for Bitcoin. The resistance level is around $87,000, where Bitcoin's advance stalled on September 21. On the other hand, support lies between $76,000 and $77,000. At the time of writing, Bitcoin was trading at $84,751, up 1.6% in the last 24 hours.