10x Derivatives Edge: BTC & ETH Volatility/Options Analysis

This week’s 10x Derivatives Edge dives deep into how Bitcoin and Ethereum option markets are reshaping the risk/reward balance. We track how the term structures for both assets have shifted, revealing what traders are now pricing across the curve. The report examines the sharp shifts in skew and risk reversals, illustrating how sentiment transitioned from fear to a more balanced outlook.

We analyze the widening implied–realized volatility spreads and what they say about whether options are rich or cheap. BTC and ETH option flows are dissected to reveal where the heaviest selling and buying have occurred—and what those signals say about positioning. We break down the record growth in option notional outstanding and why recent expiries have reset the landscape. The carry trade dynamics are highlighted, with fresh data on how volatility sellers are harvesting yield.

We also put a spotlight on ETH, where call selling has weighed on implieds while longer-dated skew still signals optimism. Finally, we outline our preferred trade structures designed to capture upside convexity while minimizing downside risks.

Trading Signals