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Bitcoin options have not been this cheap in five years. Front-month implied volatility is 33.5%, more than 4 vols below what the market is actually realizing. Traders are still paying up for protection. Skew dropped almost 3 vols in a week, and buyers took October 78,000 and 80,000 puts in blocks of up to $204m.
Investors are long and hedged, not bearish. Ethereum looks different. Its largest corporate buyer has said it will stop buying within weeks, call sellers dominate the flow, and its options are priced above realized volatility.
Below we lay out the levels that matter and two trades. One costs $168, and the other pays traders a small credit to put on. Both give exposure to the next leg in Bitcoin.
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