Put options linked to BlackRock’s Nasdaq-listed spot Bitcoin ETF (IBIT) saw a significant spike in trading volume, but analysts suggest the activity stems from a cash-secured put selling strategy, rather than outright bearish bets.

Key Developments

On Friday, trading volume surged for:

  • $30 strike puts expiring in May 2025 – over 13,000 contracts were exchanged.
  • $35 strike puts expiring in January 2026 – volume topped 10,000 contracts.

This occurred as the IBIT ETF climbed 1.7% to $57.91, according to data from Amberdata.

Earlier this year, Saxo Bank’s analyst identified cash-secured put selling as a preferred strategy for Nvidia.

What is Cash-Secured Put Selling?

Cash-secured put selling involves:

  • Selling out-of-the-money (OTM) puts while holding enough cash to purchase the underlying asset if exercised.
  • Collecting the premium as passive income if the ETF stays above the strike price.
  • Agreeing to buy the asset at the strike price if it falls below that level.

For example, traders who sold the $35 January 2026 put options will retain the premium if IBIT stays above $35. If IBIT drops below $35, they will be obligated to buy the ETF at that level, effectively acquiring it at a discount.

Calls Remain Pricier Than Puts

IBIT’s call options, which offer upside exposure, continue to trade at a premium compared to puts. This is reflected in the positive call-put skews for maturities ranging from five to 126 days, indicating higher demand for calls and consistent bullish sentiment.

The skew mirrors pricing patterns observed in Bitcoin options traded on Deribit, reinforcing broader market optimism toward BTC.

Inflow Data Supports Bullish Outlook

Further bolstering sentiment, IBIT recorded a net inflow of $393 million on Friday, accounting for the majority of the $428.9 million total inflows across the 11 U.S.-listed spot Bitcoin ETFs, according to Farside Investors.

The Bigger Picture

The surge in put volumes at $30 and $35 strike levels underscores a nuanced market strategy rather than outright pessimism. Traders are likely capitalizing on elevated volatility to generate income while positioning to accumulate IBIT shares at attractive prices. Meanwhile, the relative strength in call options and consistent ETF inflows signal ongoing confidence in Bitcoin’s long-term trajectory.