Bitcoin options traders are making increasingly aggressive bets that the world’s largest cryptocurrency could shatter its all-time high before the end of 2020. On September 14, 2020, data from analytics firm Skew.com revealed a remarkable surge in call options well above Bitcoin’s previous peak, signaling growing institutional confidence in a major price breakout.
TL;DR
- Skew.com data shows 752 open positions for $36K Bitcoin calls expiring in December 2020
- Additional 462 contracts for $32K and 230 for $28K — all above the 2017 ATH of $19,600
- Deribit dominates with approximately 79% of total BTC options open interest
- $750 million in open interest outstanding for end-of-September expiry alone
- CME options market shows five calls for every two puts, confirming bullish sentiment
Record Call Options Signal Institutional Confidence
The most striking development on September 14 was the sheer volume of far out-of-the-money call options being traded on Deribit, the leading crypto derivatives platform. According to Skew.com, the most active Bitcoin options contracts were calls for $28,000, $32,000, and $36,000 — all set to expire in December 2020. Each of these strike prices towers above Bitcoin’s previous all-time high of approximately $19,600, reached in mid-December 2017.
The breakdown of open positions tells a compelling story: 752 contracts for the $36K strike, 462 for $32K, and 230 for $28K. These are not casual trades. Each represents a significant wager that Bitcoin will not only recover but dramatically exceed its prior record within just a few months.
Deribit Dominance and Market Structure
Deribit continues to be the undisputed leader in Bitcoin options trading. In its August 2020 newsletter, the exchange noted that despite growing competition, it maintains approximately 79% of the total BTC options open interest. This concentration means Deribit’s order book serves as a reliable proxy for overall market sentiment among derivatives traders.
The activity on September 14 follows a significant options expiry event on August 28, when $570 million in notional value of BTC options contracts expired on Deribit. Rather than dampening enthusiasm, the expiry appears to have cleared the way for a new wave of aggressive positioning.
Looking ahead, Skew.com highlighted that $750 million in open interest was already outstanding for the end-of-September expiry, describing the market as “gearing up towards a pretty chunky bitcoin options expiry at the end of the month.”
CME Data Confirms Bullish Bias
The bullish sentiment extends beyond crypto-native platforms. Data from CME Group’s Bitcoin options market, analyzed by Ecoinometrics, shows that calls continue to dominate with a ratio of five calls for every two puts. While some traders are buying front-month puts as short-term protection, the overall skew remains firmly bullish.
As Ecoinometrics noted in their September 9 analysis, Bitcoin appeared to be flipping its former resistance level at $10,000 into support. “For seven days now $10,000 is holding strong,” they observed — a technical development that likely emboldened options traders to reach for higher strike prices.
Macro Backdrop Adds Fuel
The options surge is unfolding against a backdrop of significant macroeconomic uncertainty. The Federal Reserve’s FOMC meeting was scheduled for Tuesday and Wednesday of that week, with investors watching closely for signals on monetary policy. The upcoming U.S. presidential election added another layer of uncertainty to traditional markets, potentially driving more capital toward Bitcoin as a hedge.
On the spot market, Bitcoin rose more than 4% during the day’s trading sessions, approaching the $11,000 level once again. The price action confirmed the bullish narrative being painted by the options market, with the cryptocurrency firmly established above the psychologically important $10,000 threshold.
Why This Matters
The concentration of call options at such ambitious strike prices reflects a fundamental shift in market psychology. Traders are not merely hoping for a recovery — they are positioning for a parabolic move that would dwarf anything seen since 2017. Whether these bets pay off remains to be seen, but the sheer volume of open interest at $28K, $32K, and $36K suggests that a significant portion of the derivatives market believes Bitcoin is on the verge of a historic breakout. For investors, this data point serves as both a sentiment indicator and a reminder that institutional participation in crypto derivatives has reached unprecedented levels.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always do your own research before making investment decisions.
752 contracts at $36K when BTC was under $11K. Those degens either got liquidated or retired. No in between.
752 contracts at $36K with BTC under $11K. those traders were either clairvoyant or got wrecked. history says the latter
December 2020 calls at $36K and BTC hit $29K by end of December. Close but no cigar for those contracts. Expired worthless.
5:1 call to put ratio on CME. Institutions were not hedging, they were chasing. That ratio tells you everything about Q3 2020 sentiment.
CME showing 5 calls for every 2 puts in Sep 2020. institutions were screaming bullish while retail was still traumatized from the covid crash