How does option call volume affect the volatility of digital currencies?

3 answers

• Dec 16, 2021 · 3 years ago
  When the volume of option call trades increases, it can lead to higher volatility in digital currencies. This is because option call volume reflects the demand for buying digital currencies at a specific price in the future. When there is a higher demand for buying, it can create upward pressure on the price, resulting in increased volatility. Additionally, option call volume can also indicate market sentiment and investor expectations, which can further contribute to volatility in digital currencies.
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• Dec 16, 2021 · 3 years ago
  Option call volume plays a significant role in determining the volatility of digital currencies. When there is a high volume of option call trades, it suggests that more investors are optimistic about the future price of digital currencies. This optimism can lead to increased buying activity, which in turn can drive up the prices and create higher volatility. On the other hand, when option call volume is low, it indicates a lack of bullish sentiment and can result in lower volatility.
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• Dec 16, 2021 · 3 years ago
  According to a study conducted by BYDFi, option call volume has a direct impact on the volatility of digital currencies. The research found that when there is a surge in option call volume, the volatility of digital currencies tends to increase. This is because option call trades represent a bullish sentiment and can attract more buyers, leading to higher price fluctuations. However, it is important to note that option call volume is just one factor among many that can influence the volatility of digital currencies.
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