Deep out-of-the-money (OTM) bitcoin put options are gaining significant attention in longer-term expirations, as investors seek inexpensive chances for substantial returns if BTC experiences dramatic price movements.
On Deribit, a leading cryptocurrency options platform, the $20,000 strike put option ranks as the second most favored contract expiring in June 2026, with an open interest exceeding $191 million in notional value.
Notional open interest refers to the total dollar amount of active contracts. Put options with strike prices below Bitcoin’s current market value are classified as OTM and generally come at a lower cost compared to those near or above the spot price.
The June expiry period also shows considerable trading volume for other OTM puts at strikes of $30,000, $40,000, $60,000, and $75,000.
While heightened activity in deep OTM puts is often interpreted as traders preparing for a potential market downturn, this scenario differs since there is also notable demand for high-strike call options above $200,000 on the same exchange.
Together these trades suggest a bullish stance on long-term volatility rather than a directional bet on Bitcoin’s price movement. Sidrah Fariq—Deribit’s Global Head of Retail—describes this strategy as purchasing low-cost “lottery tickets” that could pay off if volatility surges within six months.
“Currently there are approximately 2,117 open contracts on the June expiry $20K bitcoin put. We’ve also observed large transactions involving $30K puts and $230K calls. This mix of far out-of-the-money options indicates sophisticated volatility plays rather than straightforward directional wagers,” Fariq explained to CoinDesk.
She clarified that these positions reflect bets on future fluctuations instead of protection against price drops because both the $20K put and $230K call lie too far from Bitcoin’s current trading level—which was around $90,500 at writing—to serve purely defensive purposes.
Investors holding both types of OTM calls and puts stand to gain asymmetric rewards if extreme swings occur either way but risk losing their premiums quickly should prices remain stable over time.
An option is a derivative contract granting its buyer rights to purchase or sell an asset at predetermined terms later. Puts give selling rights reflecting bearish expectations while calls confer buying privileges aligned with bullish outlooks.
The crypto derivatives space—including products linked with BlackRock’s IBIT ETF—has matured into an intricate marketplace where institutional players navigate complex strategies balancing risk management alongside opportunities arising from shifts in directionality, t&ime decay, a&nd volatility changes.”
Overall sentiment across option markets appears skewed toward bearishness since BTC puts consistently trade at higher premiums than calls across all durations according to Amberdata’s risk reversal metrics—a trend partly driven by ongoing call overwriting tactics designed to enhance yields atop spot holdings.”