Ethereum Has Crashed, but the Option Strategy I Showed You 3 Months Ago Is Hanging Tough. Now What?

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It is always playing backup singer to Bitcoin (BTCUSD).And by association, when I wrote about the iShares Ethereum Trust ETF (ETHA) back in September, and included a collar example (one of many flexible varieties you can screen for here), I suspect to some, the reaction was “Ethereum, that other crypto?” Let’s see what’s happened since, and what we can learn from it.Apple is an Analyst Favorite, But AAPL Stock Has Been Flat - Shorting Puts Is the Best PlayAltria’s (MO) Unusual Options Activity Just Tipped Its Hand to a Hidden Multi-Dimensional OpportunitySilver Linings Playbook: How to Speculate Safely, Even on Record-High Silver PricesStop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!What Band-Aid brand is to adhesive bandages is what Bitcoin is to cryptocurrency. Ethereum takes a backseat to that. But what ETHA does offer, and what prompted me to use it as a collar example back then, was its higher volatility much of the time, compared to Bitcoin.As it turned out, that created some pretty good option pricing a few months ago. I say that because with ETHA crashing recently, that collar would have allowed traders to take on the risk inherent in crypto, while creating an escape hatch in the form of a protective put option. Because it is part of the collar, along with the more familiar covered call segment of that trade.So I guess we could say that protective puts and Ethereum have that in common. They are the afterthought. And, as ETHA has declined so sharply this quarter, I suppose we can also consider another reason to refer to it as “poor Ethereum.” Because for big-position, unhedged traders, it has made them poorer.I do not at all mean to be flippant about this, only to highlight that risk management was a good thing to learn in 2025. But in 2026, it might just be the whole ballgame. Return is always possible, but risk has eras in which it is greatly elevated. I think 2026, especially early in the year, is one of those times.Here we see that Ethereum tracks behind Bitcoin over multiple time frames, except for the past month, where it outperformed slightly. But this is a shallow victory, if the only time something outperforms is also when it is down. This is a short time frame of course, but there’s not too much long-term history, as ETHA, the first spot Ethereum ETF, came to market in July 2024. Not enough to fill a 2-year daily chart.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,845.50 -50.74 (-0.74%)Dow 3048,063.29 -303.77 (-0.63%)Nasdaq23,241.99 -177.09 (-0.76%)Russell 20002,481.91 -18.68 (-0.75%)VIX14.95 0.00 (0.00%)Gold4,332.10 -9.00 (-0.21%)Trending tickersBTC-USD Bitcoin USD 88,159.77 +554.05 (+0.63%)ETH-USD Ethereum USD 2,985.50 +10.52 (+0.35%)XRP-USD XRP USD 1.87 +0.04 (+2.17%)DOGE-USD Dogecoin USD 0.13 +0.01 (+7.56%)SOL-USD Solana USD 125.23 +1.12 (+0.90%)PortfolioSign in to access your portfolioSign inTop gainersAXSM Axsome Therapeutics, Inc. 182.64 +33.85 (+22.75%)PSNY Polestar Automotive Holding UK PLC 21.37 +1.88 (+9.65%)ONDS Ondas Holdings Inc. 9.76 +0.77 (+8.57%)DJT Trump Media & Technology Group Corp. 13.24 +0.67 (+5.33%)PBF PBF Energy Inc. 27.12 +1.08 (+4.15%)Top losersCORT Corcept Therapeutics Incorporated 34.80 -35.40 (-50.42%)QXO QXO, Inc. 19.29 -1.75 (-8.32%)RGC Regencell Bioscience Holdings Limited 21.00 -1.90 (-8.30%)NIO NIO Inc. 5.10 -0.40 (-7.27%)PSLV Sprott Physical Silver Trust 23.65 -1.57 (-6.23%)Most activeONDS Ondas Holdings Inc. 9.76 +0.77 (+8.57%)NVDA NVIDIA Corporation 186.50 -1.04 (-0.55%)PLUG Plug Power Inc. 1.9700 +0.0350 (+1.81%)NIO NIO Inc. 5.10 -0.40 (-7.27%)TSLA Tesla, Inc. 449.72 -4.52 (-1.00%)Top economic eventsEarnings eventsMy earnings eventsEarnings events