Gate Institute: ETH implied volatility drops to nearly a one-year low, increasing the cost-effectiveness of bullish volatility combination strategies

ETH2,71%
BTC1,27%

PANews January 21 News, according to Gate Research Institute observations, this Friday will see approximately $2.1 billion in BTC and ETH options settle simultaneously. 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 a surge in funds buying put options and a notable increase in short-term hedging demand.

In terms of block trades, in the past 24 hours, the options market for BTC and ETH has mainly seen bearish 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 was executed, buying 2800-P & 3200-C, with around 5,000 ETH traded and a net premium expenditure of $2.03 million.

Recently, Gate launched a convenient options trading tool — Portfolio Strategy Orders, to help users efficiently respond to different market conditions such as narrow-range oscillations, slow gains, or slow declines. This feature supports various common multi-leg options strategies like spreads and straddles, allowing users to create multi-leg options in one go and visually display the overall cost, profit and loss structure, and risk exposure in a portfolio format. Users can quickly build and manage multi-leg strategies without having to operate each leg separately, significantly reducing operational complexity and improving trading efficiency.

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

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