BlackRock, the world’s largest asset management firm, has attracted attention with significant trading volume in put options for its Nasdaq-listed spot Bitcoin 
$104,118 ETF, IBIT, particularly at the $30 and $35 strike prices. Over 13,000 contracts for the $30 options changed hands, as the ETF’s value rose by 1.7% to reach $57.91. Meanwhile, more than 10,000 contracts were traded for the $35 put options.
What is Cash-Secured Put Selling?
An investor engaging in cash-secured put selling receives a premium by providing “insurance” against price declines. In return, they incur an obligation to purchase the underlying asset at a predetermined price if the option is exercised.
According to Greg Magadini, this strategy allows investors to earn premiums while providing the opportunity to acquire the asset at a lower price. Sellers of the $35 put options expiring in January 2026 will retain the premium as long as the ETF stays above that level. However, if the price drops below $35, the option holders can sell the ETF at that price, obligating the sellers to buy it.
Similarly, those who purchased the $30 put options will face buying obligations if the price falls below that level by the end of May 2025. Magadini noted that these trades often occur due to traders who missed the rally opting for this method.
Call Options Trade at Higher Prices
Overall, IBIT call options are still trading at higher prices than put options. There is a positive call-put skew across expiration dates ranging from five to 126 days. This indicates investors’ positive expectations regarding potential price increases for both IBIT and Bitcoin.
Farside Investors’ data reveals that IBIT recorded a total net inflow of $393 million on Friday, representing a significant portion of the total $428.9 million inflow for the 11 spot Bitcoin ETFs listed in the U.S.
