Question 1

What is GEX (Gamma Exposure) in BTC options?

Accepted Answer

GEX measures the net gamma exposure of market makers across strike prices. Positive GEX zones act as price magnets, while negative GEX can amplify volatility.

Question 2

How does IV Term Structure help in crypto trading?

Accepted Answer

IV Term Structure shows implied volatility across different expiration dates. A steep contango suggests near-term calm, while backwardation signals expected short-term volatility.

Question 3

What is Max Pain in Bitcoin options?

Accepted Answer

Max Pain is the strike price where the most options expire worthless, causing maximum loss for option holders. BTC price often gravitates toward max pain near expiry.