Lets find out what options traders are predicting for ETH going into the merge.
In general, traders are mega bullish goin forward.
with CALLS open interest over-favoring PUTS open interest 5 to 1
most of this interest is expiring at the end of this month(The Merge), the end of the year(Typical) and something in march next year drawing major interest too(dunno what, lemme know).
over the week tho… most interest is expiring on Friday(Week end of merge, typical).
but… most interest is at ~1100 and 2100
with a PUT/CALL ratio at ~1:1.
essentially, traders are betting on major volatility coming but still expecting a mean reversion at end of it all.
The smart low risk low reward trade here is to short those 1100 and 2100 strikes and collect the premium.
The degen high risk high reward trade is to a pick direction and bet on OUT THE MONEY options.
I’m thinking sell the news, PUTS.
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This post is based on this twitter thread.