eth options flow. put/call oi ratio 0.56, so open interest leans heavily toward calls. but today's volume tells a different story: put/call volume ratio 1.02, meaning puts and calls traded almost evenly. fresh hedging demand creeping in while existing book stays bullish.
max pain for nearest expiry (9jul26) sits at $1,750. spot at $1,800. that's a magnet pulling price down toward max pain, typical pinning behavior likely as expiry nears. atm iv 56.5%, elevated but not extreme.
dealer hedging flips negative below $1,750 max pain. above that level, dealers buy spot to hedge short calls, adding upward pressure. below $1,750, they sell spot to hedge short puts, accelerating any drop. the line is thin.
cta positioning still long eth after the recent bounce. a break below $1,750 would trigger systematic selling from both dealer hedges and momentum signals. the gamma cluster there is dense.
#ETHFlow #PerpFunding #FundingArb $ETH
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Originally published on FalsifyLab Substack.