Weekend Note

• Vols have been absolutely crushed after ETH spot ETF approval this week in spite of prevailing catalysts:
  1. Bearish BTC – potential supply from Mt. Gox distribution (~$9.6b) and also from DMM hack (~$305m)
  2. Bullish ETH – ETH spot ETFs could start trading earlier than expected in June with the SEC urging applicants to submit S-1 forms by 31 May
• A sleepy market may get caught offside and our bet is on the bullish side, particularly for ETH.

Trade Ideas:
ETH Sep KIKOs (Knock-In, Knock-Out)
Sell 3000 Put w 2500 Knock-in (protection)
Buy 4500 Call w 6200 Knock-out
Cost: ZERO
Max payout: 175% pa or $1,700 USD per ETH if spot expires just below 6200)
Downside: At expiry, if spot is below 2,500, you buy ETH at 3,000.
(Spot ref: 3780 )