QCP Capital: A large amount of bearish options selling occurred after the non-farm payrolls were released

ChainCatcher news, QCP Capital stated in an official channel that after the non-farm payroll data was released yesterday, the market's initial reaction was positive, driving risk assets higher. However, as the market began to digest the expectation of a 50 basis point rate cut in September, bullish sentiment underwent a sharp reversal. After the non-farm employment data was released, the market expected a 55% chance of a 50 basis point rate cut. But as of this morning, the market's expectation of a 25 basis point rate cut has risen to 70%, while the probability of a 50 basis point cut has fallen to 30%.

Even as cryptocurrencies declined, the options market remained relatively calm. There was even a significant amount of put option selling observed throughout the trading session. We noted that as spot prices consolidated over the weekend, front-end volatility is decreasing.