Analysis: The market entered a pullback, with the share of large-scale put option trades reaching one-third.
According to analysis by Greeks.live, the market has entered a pullback, with the trading share of large put options reaching one-third. The implied volatility (IV) for major option maturities has slightly decreased compared to the previous two weeks. During this recent rally, IV did not rise significantly and has now fallen to around 35%. From the options data perspective, the current situation aligns more with a rebound in the mid-stage bear market. Market participants have low expectations for volatility; even slight volatility prompts them to sell volatility.
Large put options now account for one-third of trades while implied volatility stays low, showing market participants are hedging downside and have weak volatility expectations. This reflects cautious positioning and a defensive risk appetite, which adds near-term bearish pressure on crypto prices (medium).