10x Derivatives Edge: Smart Options Plays

Trades: Selling puts ahead of major macro events—such as key data releases or rate decisions—can be tough to hold with confidence, even when put skew looks extreme. However, as the recent volatility data shows, the upside wing vols have also risen sharply—a move not fully reflected in traditional put-call skew metrics, but clearly visible in the ATM and call-vol levels. When this is combined with an inverted term structure, the setup becomes particularly interesting.

Evolution of Bitcoin and Ethereum Skew

Flows: Overall, options flows have been dominated by strong put and downside structure buying, keeping volatility well supported. Realized volatility remains elevated, with 1-week realized vol trading above implied for most of the week—favoring option buyers in the short term. While there has been occasional call interest, downside protection remains the primary theme. Notably, the put skew on BTC is significantly higher than on ETH, which continues to push BTC implied volatility upward relative to the broader crypto options market.

Trading Signals