Everything on Market Structure

Institutional participation in options markets is dampening volatility by selling options to generate yield. This structural change stabilizes the market but requires traders to identify specific catalysts for breakouts.

Impact: The dampening effect of institutional yield strategies may lead to longer periods of range-bound trading, requiring more sophisticated strategies to capture alpha.

— from On-Chain Options: Derive's Strategy for Crypto Derivatives · The Milk Road Show· Jan 28, 2026