Crypto Options Flow During Market Consolidation

Summary

This weekly market note describes crypto options positioning after global tensions eased and risk assets rallied. It reports that Bitcoin rebounded from the lows, prompting traders to unwind protective puts below $60,000 in April and May expiries. Call activity was mixed: some exposure was retained during the rally, while sellers appeared in May $80,000 calls after a sharp bounce. The note characterizes Bitcoin as consolidating in the mid-$60,000s to $74,000 range, with implied volatility drifting.

For Ether, the report mentions two-way trading across April calls and puts, a large June put spread retained as a portfolio hedge, and an absence of the usual call overwriting. It also observes softer put skew and a recent drift in realized volatility across crypto and other risk assets. These are qualitative observations about one week’s flows, not a repeatable strategy or causal test. The note offers no complete trade records, performance measures, or broader evidence that the flow patterns predict subsequent prices.

Key ideas

• Bitcoin’s rebound coincided with sales of protective puts in April and May expiries.
• Bitcoin call flows were mixed, with some call exposure retained and sellers appearing after the rally.
• The note describes Ether flow as two-way and says a large June put spread remained as a portfolio hedge.
• Put skew softened as demand for protection and some existing positions unwound.
• The report is a snapshot of market flows and does not establish that these flows predict future returns.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.