How Do Options Traders Use Volatility Derived from PoW/PoS Transition Events?

Major network transitions, like The Merge, generate significant market uncertainty and high implied volatility (IV). Options traders profit by anticipating whether IV will be overpriced or underpriced relative to actual price movement.

Traders may buy options (long volatility) expecting a large move or sell options (short volatility) expecting the event to be a non-event. The uncertainty around a successful transition fuels higher option premiums, especially for short-dated contracts.