@lesleyroy

Elevated demand for out-of-the-money ETH calls signals traders are paying up for convex upside, implying expectations of a decisive breakout and/or an approach of catalytic events. Rising implied volatility alongside skew favoring calls suggests a preference for leveraged bullish exposure rather than spot buying, often from funds seeking defined risk. Growing open interest at clustered strikes builds “gamma magnets,” raising the probability of sharp moves as dealers hedge. Higher term structure at the front end reflects near-term uncertainty around ETFs, upgrades, or macro prints. Meanwhile, thinner put interest and a falling put-call ratio point to limited appetite for downside protection. Net-net, options heat implies optimistic positioning but also fragility: a disappointment can trigger volatility resets and fast de-risking via long-gamma unwind.

0 reply

0 recast

0 reaction