Ethereum's $28M Straddle Flags a Big Volatility Bet

Ethereum’s options market signaled a large volatility bet after a trader bought a long straddle worth about $28 million in notional exposure. The position involved 15,000 contracts split evenly between at-the-money calls and at-the-money puts with a strike of $1,875, expiring July 24, 2026. Reporting at the time said the trader paid roughly $852,000 in premium, or $56.80 per ETH. Because the strategy is designed to profit from movement rather than direction, the trade’s breakevens were set at about $1,931.80 above the strike or $1,818.20 below it by expiry. If ETH closed at $2,000, the article estimated profit of about $68.20 per ETH after premium. If ETH finished at the $1,875 strike, both legs would expire worthless, resulting in loss of the premium. The piece also highlighted that short-dated long options face heavy time decay, while gamma and dealer hedging can intensify intraday dynamics.