ETH options traders are taking a more cautious approach to Hedging the potential big dump risk in March

Golden Finance reported that this week Ethereum (ETH) market volatility has risen significantly, with implied Volatility (IV) rising rapidly, catching Crypto Assets Options traders off guard. Changes in market structure have prompted traders to adjust their positions to address potential downside risks. Cryptocurrency derivatives trader Gordon Grant emphasized that the implied Volatility of Options for the week has exceeded 80%, and the market expects daily price fluctuations in March to be close to 4%. Traders are more inclined to buy put Options as risk hedging tools rather than betting on price rebounds, reflecting concerns in the market about further declines. In the short term, as Volatility rises, the demand for put Options increases, and the market enters the phase of 'negative spot-Volatility correlation' (i.e., Volatility rises when prices fall). Due to the surge in Volatility, Options traders (especially market makers) quickly adjust their positions, using more defensive measures such as spread strategies (put spreads) instead of directly buying put Options.