options over perps. leverage without liquidation. soon on @monad!

Joined November 2020
🚨 BOOST REWARDS ARE LIVE 🏹 Phase 1 = flat 20% rebate on every single trade. No tiers. No tricks. Just instant fuel for your bags. 🎯 Reward pool is capped 🎯 First come, first boosted 🎯 Ends the moment Phase 1 runs dry This is literally free edge for options traders. Stack $AVAX while it lasts 👉 arrow.markets 🔥🔥
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Options compute does not belong inside an onchain VM. Derive V3 moving to offchain matching with ZK settlement on Ethereum is the right evolution. Continuous Greeks and portfolio margin break execution layers. Offchain risk engines plus ZK proofs remove the latency bottleneck.
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Arrow Markets retweeted
idk? stop hiding? think this is a pretty good way to make options feel simple? wdyt?
where are the crypto options traders hiding???
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Binance launching options on 1,000 US stocks & ETFs alongside Bitget rolling out US equity options in USDT marks an expansion of derivatives access for global retail. For traders outside the US, the setup offers direct capital efficiency: posting USDT margin, trading equities alongside crypto under unified portfolio margin, and removing traditional banking rails. Looking at the underlying financial plumbing, the trade-offs split across distinct models: TradFi brokerage (Robinhood / retail brokers) Orders route through PFOF/market makers, with clearing settled centrally via OCC central clearing. • Trade-offs: Standard market hours and strict margin/PDT limits, backed by established regulatory clearing. CEX offshore equity options (Binance & Bitget) Trades execute with Stablecoin (USDT) margin. Positions utilize unified portfolio margin with crypto, routed via omnibus broker accounts / OTC dealer arrangements with centralized clearing/custody. • Trade-offs: Global capital efficiency and continuous execution, dependent on centralized clearing intermediaries and omnibus dealer custody.
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30-year Treasury yields just hit 5.2%. Highest since 2001. Here's why every options trader should care: higher yields = higher cost of carry = every call option just got repriced. In equity options, the risk-free rate feeds directly into Black-Scholes. When that rate jumps, forward prices rise, calls get more expensive, puts get cheaper. Portfolio hedges that worked at 3% rates look completely different at 5%. Now here's where it gets spicy for crypto: BTC options pricing uses the same math, but your "risk-free rate" is staking yield. ETH staking at ~3.5%, various DeFi rates even higher. That means crypto options have been living with elevated cost of carry for years. Tradfi options traders just woke up to what onchain options traders already deal with every day. The math is the same. The only difference is crypto figured it out first. 🏹🔥
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Every options trader on TradFi Twitter knows the MSCI rebalance play. Index gets reshuffled → scheduled buying/selling pressure → implied vol spikes on affected names → you sell premium into the crush. Crypto has its own version now. BTC gets added to an index? Same playbook. Known catalyst date with directional flow and vol expansion baked in. Onchain options let you express the trade without a broker, a margin call, or a 4 AM wire transfer. ⚡
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Arrow Markets retweeted
Options are the closest thing finance has to a superpower.
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Crypto projects can react in near real time to market conditions, selling into rallies more aggressively than public companies. The projects that do this the most, underperform relative to their peers. New joint work with @MichaelCNowotny.
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Tokens that print the fastest underperform the most. Long the supply-stable, short the fastest diluters: 35–45%/yr, Sharpe 1.39 (t=3.67), 2021–2026. BTC buy-and-hold over the same window: 0.44. And it isn't reversal in disguise. New piece with @0xprotean: open.substack.com/pub/patric…
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the gap between defi derivatives marketing decks and their actual liquidity is the funniest thing in crypto right now
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Arrow Markets retweeted
Cross-sectional reversal in cryptocurrency returns is substantial. We extended our 70-name panel to a universe of 500 symbols and applied real-time selection criteria. Long-short (LMW) portfolios sorted on past returns and volatility generate high mean returns and high Sharpe ratios. Past winners sell off on average, and past losers rebound episodically. The effect is concentrated in projects with discretionary treasury management - a point we are continuing to investigate.
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This actually explains why crypto feels so mentally exhausting compared to other markets. In equities, reversals can take years to play out. In crypto, an entire cycle of: euphoria → distribution → panic → rebound can happen in like… 8 weeks. Treasuries sell into strength.
Unlocks hit faster.
Narratives rotate faster.
Liquidity disappears faster. The interesting part is what this means for traders: If violent reversals are structurally embedded into crypto, then risk management is no longer optional. A spot bag can only “wait it out” for so long when volatility itself becomes the product. This is where options become interesting: not just for leverage, but for expressing views on volatility, timing, and asymmetric rebounds without needing all-in directional exposure. Crypto moves fast and it’s safe to say that option trading is one of the best tools to help you stay ahead instead of constantly playing catch-up.
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Arrow Markets retweeted
Reversal is systematic in crypto returns. Portfolios that long losers and short winners (LMW), based on 8-12 week horizons, generate high Sharpe ratios and are almost orthogonal to the market. The effect is concentrated in relatively volatile, midsize assets. Joint with @MichaelCNowotny
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You shouldn’t be blocked from trading just because getting funds onto a chain somehow turns into 15 open tabs 🤷‍♂️ Arrow keeps it simple in the way it should’ve been from the start. You bridge your USDC into @monad , your capital is ready to go, and you can actually focus on trading instead of getting lost in some weird detour. Just bridge and trade like how it's supposed to be 🏹🔥
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Arrow Markets retweeted
Toward a momentum factor for cryptocurrencies? Factor models make risk management easier and more effective. Joint w @MichaelCNowotny xitter.cf/hexshapeshifter/status…
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You’re not “unlucky”, you’ve just been asking the wrong question. Most “quant” crypto traders pick coins that move together… then pray that they’re right. This paper flips it: instead of PCA (finds what moves the most), they use Risk-Premium PCA which finds what moves AND actually gets paid (high Sharpe) 📈 Translation: There are 2 forces in crypto 1.The “everything pumps/dumps together” factor 2.The “this specific basket has extra edge” factor Cool. But here’s the part nobody tells you: high Sharpe baskets can still get nuked in 1 ugly week. That’s where options come in like seatbelts, you pay a small cost to cap the damage when the car spins out. Most “unlukcy” traders ask:“How can I be right?” Successful traders ask: “How wrong can I afford to be?”
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“One of crypto’s most profitable businesses” Sure aint us.
NEW: Major investigation dropping February 26 on one of crypto’s most profitable businesses where multiple employees abused internal data to insider trade over a prolonged period of time.
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Arrow Markets retweeted
tap to see what Avalanche is built for.
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