Option Flow: ETH Call Activity Heats Up

In this week’s edition of Option Flows, Tony Stewart is commenting on the recent market movements.

Whipsaw Spot moves at the year’s outset.

The standout trade in the last few days has been a buyer of ETH Jan17 3.3+3.4+3.45k Calls, notional $150m, total premium $6m if all by the same entity.

OI all suggests opening, so a decent quick bet on upside (if not replacing delta).

2) Dominant blue buys around the 3.3-3.45k Calls.

This was during and after the ETH foundation sales and general market sell-off over the last three days.

The short-dated Jan17 maturity presents either the confidence of an immediate bounce or exhaustion and delta replacement.

3) While IV was naturally drifting lower, the buyer’s impact can be seen at the front end of the curve.
This is a committed purchase given the US President Carter Memorial Day today and the weekend ahead. Lots of Theta and/or market rally to counter to make this trade work out.

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