# Net Buying Pressure and the Information in Bitcoin Option Trades

**Authors:** Carol Alexander, Jun Deng, Jianfen Feng, Huning Wan  
**arXiv:** [2109.02776](https://arxiv.org/abs/2109.02776)  
**Date:** 2021-09-06  
**Summary page:** https://www.summarizepaper.com/fr/paper/2109.02776v1/

## Abstract

How do supply and demand from informed traders drive market prices of bitcoin options? Deribit options tick-level data supports the limits-to-arbitrage hypothesis about market maker's supply. The main demand-side effects are that at-the-money option prices are largely driven by volatility traders and out-of-the-money options are simultaneously driven by volatility traders and those with proprietary information about the direction of future bitcoin price movements. The demand-side trading results contrast with prior studies on established options markets in the US and Asia, but we also show that Deribit is rapidly evolving into a more efficient channel for aggregating information from informed traders.