Gate Research: Downside risks in the market have not yet been cleared, and funds are flowing into Ethereum options long volatility strategies.
PANews reported on January 29th that, according to Gate Research, approximately $9.8 billion worth of BTC and ETH options will be settled this Friday. Currently, the implied volatility (IV) for BTC and ETH is 38% and 54% respectively, with ETH IV having fallen to an extremely low level at the 1.6th percentile over the past year. BTC and ETH skew have remained negative for the past week, indicating that downside protection demand is dominant; short-term risk aversion has clearly increased, while long-term risk pricing remains stable. In terms of block trades, in the BTC and ETH options market in the past 24 hours, block trades were mainly put spreads; the largest structure was a BTC sell BTC-30JAN26-85000-P, with approximately 500 BTC traded and a net premium income of approximately $180,000. An ETH long volatility strategy buy ETH-6FEB26-3150-C, with approximately 2,000 ETH traded and a net premium expenditure of approximately $90,000.
Gate recently launched a convenient options trading tool – Combination Strategy Ordering – to help users efficiently manage different market conditions such as narrow-range fluctuations, gradual rises, or gradual falls. This feature supports various common multi-leg option strategies, including spreads and straddles, allowing users to create multi-leg options at once and visually display the overall cost, profit/loss structure, and risk exposure in a combined format. Users can quickly build and manage multi-leg strategies without having to operate on each leg individually, significantly reducing operational complexity and improving trading efficiency.
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