In this week’s edition of Option Flows, Tony Stewart is commenting on the latest market movement while we come to an end of 2023.
ETH Mar 2k-3k Call spread bought x30k. Hated ETH rotation as BTC+loved Alts Pull-back.
ETH Dec ATM bought, and Jan+Mar 3k Calls bought x25k, pushing ETH Dvol >60%, while BTC Dec ATM sold and DVol drifts <57% as anticipation of an imminent pre-holiday BTC Spot ETF diminishes.
2) Uncommon to see an ITM-OTM Call spread bought, furthermore on ETH.
OI shows this as opening.
But this style of Call spread (rather than an ATM/OTM-OTM spread) is often employed as ETH Delta replacement but with a fixed invalidation, <2k.
Remains bullish exposure, long basis.
3) With ETH pushing >3k and back in vogue (temporarily?), some seeing the value in a post-BTC-Spot-ETF-approval world where ETH may become the focus.
ETH 3k Calls bought 25k for end Jan+Mar expiries.
Small clip of buying ETH Gamma to sell BTC Gamma executed.
Combined Dvol >60%.
View Twitter thread.
AUTHOR(S)
ex-MS Head of Trading desk /BTC Vol. Prop trading /Option Market forensics/ Alter Ego account Digital Asset arena. Tweets are my opinion, not financial advice.