Gate Research Institute: Implied Volatility is oscillating at a high level, and Block Trading indicates a moderate Rebound may occur by the end of the year.

Options Market Dynamics

The latest data shows that the implied volatility of BTC is 45% and that of ETH is 74%, maintaining a high level of fluctuations overall, reflecting the market's strong expectations for future volatility. From the skew structure perspective, around November 10, both BTC and ETH's 25-Delta Skew experienced a brief steepening, with the short-term structure (7D, 30D) dropping to about -6 vol and -8 vol respectively, indicating an increase in market hedging demand during times of heightened short-term volatility; while the medium to long-term Skew basically remains stable, showing limited overall bearish sentiment, with this round of changes mainly stemming from short-term emotional disturbances. The realized volatility (RV) of BTC has decreased to about 39.7, and the volatility risk premium (VRP = IV − RV) has shifted from negative to positive, indicating that the market is pricing future volatility too high. The RV of ETH has dropped to about 62, and the VRP has also shifted from negative to positive this week. In the context of improved risk appetite, the implied volatility is relatively overvalued, thus giving the seller's volatility strategy a relative advantage.

Block Trade Structure

This week in the BTC and ETH Options market, dominant block trades are mainly focused on bullish positioning for the end of the year, indicating that investors prefer to participate in a moderately rising market in the future at a lower cost while also managing risks. The largest block trades for BTC and ETH are as follows:

• BTC: Buy BTC-261225-95,000-P, sell BTC-261225-108,000-P, a total of approximately 1,000 BTC traded, with premium income of about 5.98 million USD. This strategy benefits from moderate rises or range fluctuations while providing some protection against potential declines, reflecting the market's speculative psychology regarding a moderate rise in prices.
• ETH: Bought long call options ETH-261225-6,500-C, with a total transaction of 9,700 ETH, premium expenditure of approximately $137,000, indicating that investors maintain an optimistic outlook on the long-term price trend of Ethereum.

Platform Update

Gate Options will launch the latest fee discount activity from November 3, 00:00 to November 30, 00:00 (UTC+8), with the lowest fee rates for BTC and ETH options at 0.025%, adopting a tiered fee structure to implement an incentive mechanism where “the higher the trading volume, the lower the fee.” This initiative aims to further optimize market liquidity, strengthen the trading participation of professional and institutional investors, and continuously enhance the depth and activity of the platform's options market.

Transaction details: https://www.gate.com/options/BTC_USDT