Bitcoin Traders Target $20,000 Strike as Deep Out-of-the-Money Options Gain Traction
The Deribit June 2026 $20,000 put option has become highly popular, with over $191 million in notional open interest and about 2,117 contracts open. This option, along with other deep out-of-the-money (OTM) puts at strikes such as $30,000, $40,000, $60,000, and $75,000, is considered a bet on long-dated volatility rather than a directional hedge due to the considerable distance from Bitcoin's current price.
Bitcoin (BTC) is trading near $90,500 at the time of writing. These OTM options could potentially yield asymmetric payoffs if volatility spikes but would lose value if the market remains flat. High-strike calls above $200,000 are also actively traded, indicating a broader positioning focused on volatility rather than price direction.
Market observers describe these trades as inexpensive "lottery tickets" aimed at capturing large moves over the next six months, not as directional price bets. The overall market sentiment appears bearish, with puts trading at a premium to calls across various maturities. This pattern is partly explained by call overwriting strategies that aim to boost yield, according to Amberdata risk reversals.
Sidrah Fariq from Deribit highlighted that these flows represent volatility positioning, emphasizing long-dated volatility exposure managed primarily by institutions and large traders. The crypto options market, including products linked to BlackRock’s IBIT ETF, is portrayed as a sophisticated arena where major participants seek to manage risks and capitalize on volatility, time decay, and potential price movements.
The analysis was provided by Omkar Godbole and James Van Straten and edited by Sam Reynolds on December 9, 2025.
