QCP Capital: A large number of put options were sold after the release of non-farm data

QCP Capital posted on its official channel that the initial market reaction after the release of non-farm data yesterday was positive, driving risk assets up. But as the market began to digest the expectation of a 50 basis point rate cut in September, bullish sentiment took a sharp turn. After the release of non-farm payrolls, the market expected a 50 basis point rate cut with a probability of 55%. But as of this morning, the market expected a 25 basis point rate cut to have a probability of 70%, and a 50 basis point rate cut to have a probability of 30%. Even as cryptocurrencies moved lower, the options market was relatively calm. Even a large amount of put option selling was seen throughout the trading session. We observed that the front-end volatility was declining as the spot consolidated over the weekend.