QCP Asia Colour

As we approach the quarter-end options expiry this Friday, the options market has been notably quiet, with the typical quarter end vol sell off taking effect.

Some chatter appeared today suggesting the imminent trading of ETH ETFs.

1. VanEck has filed their 8-A form, worth highlighting the same form for Bitcoin ETF was filed exactly 7 days before the launch.

2. VanEck subsequently announced zero fees for the initial phase of their ETH ETF.

The ETH options market for July expiries in particular, has not shown much excitement thus far. If there is a substantial breakthrough in the approval process, it could catch the market by surprise.

Trade Idea
ETH has shown robust support levels at 3,200 and 2,800, with the latter not touched for over four months. This forms a strong basis for creatively expressing one’s bullish view by deploying into a Conditional Fixed Coupon Convertibles (CFCC), yielding up to 66% p.a.

ETH Conditional Fixed Coupon Convertible
Coupon Payment: 66% p.a. every Friday as long as spot price is above 3,200
Expiry: 13-Dec, 6 months
Strike: 3,200 (-5.8%)
Protection: 2,800 (-17.6%)
At expiry, only if spot is below 2,800, the USD deployed is used to buy ETH at strike of 3,200

(Spot Ref: 3,400)