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ETH Call Ratio Spread: A Bullish Options Strategy with Short-Call Risk

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Summary

The article presents a bullish Ethereum options trade using a call ratio spread: buy one out-of-the-money call and sell two calls at a higher strike with the same expiry. Its example uses an August 3 expiry, buying the $3,400 call and selling two $3,500 calls. The stated rationale is that ETH might rise through a supply zone, supported by $33.7 million in net inflows to US spot Ethereum ETFs after a negative-flow streak and ETH’s relative outperformance against BTC.

The payoff is highest if ETH expires at the short strike of $3,500; the stated maximum profit is $92.39 per ETH against a $7.61 net debit. The structure has net short call exposure, so a sufficiently large rise can cause significant losses. The thesis relies on short-term flow and chart observations, not a backtest or probability analysis, and should be read as a dated market setup rather than a general forecast. The piece also outlines how to submit the combined order through the exchange’s combo interface.

Key ideas

  • A call ratio spread buys one lower-strike call and sells two higher-strike calls with the same expiry.
  • The example targets maximum profit if ETH expires at the $3,500 short strike.
  • ETF inflows and relative ETH strength are offered as reasons for a bullish view.
  • The trade’s net short call exposure can lead to significant losses if ETH rises sharply.
  • The thesis is based on a specific market snapshot and does not provide backtest evidence.

Tags

CryptoOptionsDerivatives pricingRisk management

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