The significant trade targets profits from expected ether price fluctuations.
By Omkar Godbole|Edited by Shaurya Malwa Jul 17, 2026, 7:28 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on This $28 million ether market bet aims to profit from pure market chaos. (Unsplash)SummaryShow- A trader executed a long straddle on ether valued at approximately $28 million, acquiring 7,500 call options and 7,500 put options at a strike price of $1,875, set to expire on July 24.
- This trade represents a strong belief in significant ether price volatility, with profits hinging on substantial price movements rather than a specific target.
- The trader disbursed around $852,000 as a premium, which is the maximum loss if ether's price remains stable.
A substantial bullish bet on ether's volatility was made this week, structured to yield significant returns from sharp price fluctuations by July 24.
This trade, a large-scale "long straddle," involved the concurrent purchase of 7,500 calls and 7,500 puts with a strike price of $1,875, set to expire on July 24, as reported by Laevitas. This is akin to buying two lottery tickets simultaneously: one that pays out if prices rise sharply and another that pays out if they fall dramatically. Thus, any significant movement in either direction could result in profits.
Consequently, this trade signifies a strong conviction that ether's price will likely experience rapid shifts over the next nine days. Currently, ether is trading at $1,825, reflecting a 2% decrease since midnight UTC, according to CoinDesk data. Recently, prices exceeded $1,900, having dipped near $1,500 in late June.
Gains from volatility over price direction
The buyer of the straddle essentially posits, "I’m uncertain about the price direction, but I’m confident that it won’t remain stable, and there will be a significant move either way."
This indicates that major market players are not limited to being only "long" or "short" speculators; rather, they are increasingly viewing volatility as an independent asset class and utilizing complex options Greeks, particularly vega (sensitivity to volatility) and gamma (sensitivity to price acceleration), to capitalize on market fluctuations.
Details of the $28 million straddle
Notional value refers to the total market value of the underlying asset involved in the trade, rather than the cash outlaid to initiate it.
The straddle consisted of 15,000 contracts, each representing 1 ETH. Thus, the notional value is calculated by multiplying 15,000 by the ETH market price at the time of the trade execution, totaling approximately $28 million.
Per Laevitas, the trader invested a premium of $852,000 to set up this $28 million notional straddle. This premium signifies the maximum risk if ether remains stable or subdued by the July 24 expiration, resulting in a "time-decay" effect on the option's value.
As for the potential maximum profit, it is theoretically limitless. This is due to the fact that volatility itself has no ceiling, as asset prices can potentially swing dramatically in either direction.
Word of caution
While the idea of profiting from price movements in either direction is appealing, the high entry cost and the constant decay of time value serve as significant warnings.
Without a robust risk management strategy and a thorough understanding of the "Greeks," an investor's capital could dissipate just as swiftly as market volatility can change.
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Why it matters:
CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
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