Gate Research: ETH Impulse Volatility Falls to Nearly One-Year Low, Enhancing the Cost-Effectiveness of Long Volatility Combination Strategies

PANews reported on January 21st that, according to Gate Research, approximately $2.1 billion worth of BTC and ETH options will be settled this Friday. Currently, the implied volatility (IV) for BTC and ETH is 42% and 56% respectively, with ETH IV having fallen to an extremely low level, at the 1.1% percentile over the past year. Over the past week, the 25-Delta Skew for both BTC and ETH has shown a significant negative overall trend, with the short-term (7D/30D) declines being the most pronounced, indicating a concentrated buying of put options and a significant increase in demand for short-term downside hedging. In terms of block trades, the BTC and ETH options market in the last 24 hours has been dominated by put spreads; the structure is BTC put spread buy 88k/sell 90k (30JAN26-P), with a total volume of approximately 1,115 BTC and net premium income of approximately $730,000. An ETH long volatility straddle strategy was executed, buying 2800-P & 3200-C, with a total volume of approximately 5,000 ETH and a net premium expenditure of $2.03 million.

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.