Markets rose ahead of Nvidia’s earnings update. Trading conditions shifted back toward risk-taking.
The FTSE 100 extended its rally and was said to be approaching 11,000. It had first moved above 10,000 only weeks earlier.
Ftse 100 Valuation And Sector Support
The index was supported by its lower valuation versus US markets and strength in sectors such as mining, defence, and banking. Pharmaceutical stocks were also mentioned, along with support from dividend payments.
Bitcoin climbed 5%, marking its best day in about three weeks. Even after the jump, it was still well below its late-January highs.
In 2025, traders were excited when the FTSE 100 first broke 10,000, and many expected a quick move to 11,000. The index did reach that level later in the year, but it has since eased back to around 10,600. The UK inflation report for January 2026 came in slightly above expectations at 3.1%, which has reduced momentum for now.
This pullback may offer an entry point for bullish traders who still see the FTSE’s valuation discount to the US as the main story. Implied volatility has dropped to a 52-week low near 14%, which makes options relatively cheap. One approach is to buy April 2026 call options with a strike around 10,800 to position for a rebound.
Bitcoin Volatility And Options Strategies
Support from mining and banking, which some see as less exposed to the AI-driven swings in US tech, remains an important theme. With the Nasdaq 100 trading at a forward price-to-earnings ratio above 35, the FTSE 100 at around 15 looks inexpensive by comparison. Selling out-of-the-money put options on major miners or banks may be a way to collect premium from this perceived stability.
In 2025, the 5% Bitcoin move was an early sign of a slow recovery that later carried it to new highs. In early 2026, Bitcoin has been consolidating in a narrow range near $85,000 for several weeks. Its 30-day realized volatility has fallen sharply and is now near 45%, down from above 90% during parts of last year’s rally.
For derivatives traders, the sideways price action and lower volatility can be a signal to sell options premium. Strategies that benefit from a quiet market, such as an iron condor or a strangle, are gaining attention. Traders are using March 2026 strangles by selling puts near $78,000 and calls near $92,000, aiming to profit if Bitcoin stays range-bound in the weeks ahead.
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