Gate Institute: $2.1 billion options settlement imminent, boosting the cost-effectiveness of long volatility portfolio strategies

BTC-0,33%
ETH-0,63%

Odaily Planet Daily reports that this Friday will see approximately $2.1 billion in BTC and ETH options settle. Currently, the implied volatility (IV) for BTC and ETH are 42% and 56%, respectively, with ETH IV dropping to the lowest 1.1% percentile in the past year. Over the past week, the 25-Delta Skew for BTC and ETH has generally turned negative, with the most significant decline in short-term (7D/30D), indicating that funds are heavily buying put options and there is a notable increase in short-term hedging demand. In terms of block trades, in the past 24 hours, the BTC and ETH options markets have mainly seen block trades with put spreads; the structure involves buying BTC puts at 88k and selling at 90k (30JAN26-P)), with approximately 1,115 BTC traded and a net premium income of about $730,000. For ETH, a wide straddle strategy involving buying 2800-P & 3200-C options traded about 5,000 ETH, with a net premium expenditure of $2.03 million.

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