How Does an Unexpected News Event for a Cryptocurrency Affect the Extrinsic Value of Its Options? ⎊ Path

How Does an Unexpected News Event for a Cryptocurrency Affect the Extrinsic Value of Its Options?

An unexpected news event, especially one that creates significant uncertainty or potential for a large price swing (e.g. a regulatory announcement or major hack), will cause the implied volatility (IV) to spike. Since extrinsic value is directly tied to IV, this spike will cause the extrinsic value of all options, particularly ATM ones, to increase dramatically.

What Is “Implied Volatility” in Options Pricing and How Might News about Cryptographic Vulnerabilities Affect It?

How Does a Major Cryptocurrency News Event Typically Affect Implied Volatility?

How Do Cryptocurrency Markets React to News of Potential Security Threats to Their Hashing Algorithms?

How Does a Major Cryptocurrency News Event Typically Affect IV?

How Does the Concept of “Slippage” in Trading Relate to Unexpected Fee Changes?

How Does a Sudden News Event Typically Affect the Implied Volatility of a Derivative?

How Does a Significant Market Event, like a Regulatory Announcement, Impact the Implied Volatility of Crypto Options?

How Do News Events and Earnings Reports Affect Implied Volatility?