BlackRock Bitcoin ETF Sees Surge in Put Option Activity at $30, $35 Levels

BlackRock Bitcoin ETF Put Volumes Surge as Traders Employ ‘Cash-Secured’ Strategies to Enter Market

Put option volumes for BlackRock’s spot bitcoin ETF (IBIT) spiked on Friday, but the surge is less about bearish sentiment and more about strategic positioning through cash-secured put selling.

Over 13,000 contracts of the $30 put expiring in May 2025 traded hands, alongside more than 10,000 contracts for the $35 put expiring in January 2026. This activity occurred as IBIT climbed 1.7% to $57.91, according to Amberdata data.

Greg Magadini, director of derivatives at Amberdata, explained that traders likely sought to secure a lower entry point on IBIT or earn passive income via option premiums. “The elevated put flows suggest net selling, potentially from traders pursuing cash-secured put strategies after missing the recent rally,” Magadini noted.

In a cash-secured put strategy, sellers write puts on an asset while holding sufficient cash to purchase it at the strike price if exercised. This allows traders to profit from the premium collected while offering an opportunity to buy the ETF at a discounted level if prices fall.

For instance, sellers of the $35 put option due January 2026 will keep the premium if IBIT remains above $35. If prices dip below that threshold, sellers are obligated to buy at $35—still benefitting from the premium collected.

Positive Call-Put Skew Signals Bullish Sentiment

Despite the surge in put volumes, IBIT call options remain notably more expensive, with positive call-put skews across multiple expirations. This indicates higher implied volatility for calls, a sign of strong bullish sentiment among traders.

ETF Inflows Remain Robust

Adding to the optimism, IBIT recorded a net inflow of $393 million on Friday, representing the lion’s share of the $428.9 million that flowed into U.S.-listed spot bitcoin ETFs, per Farside Investors.

While put option activity may appear bearish at face value, the underlying strategy reflects a calculated approach by traders looking to capitalize on IBIT’s momentum while hedging downside risks.