If you checked the crypto markets on February 13, 2026, you might have noticed unusual price swings in Bitcoin and Ethereum. The reason was not a hack, a regulatory announcement, or a whale moving coins. It was something called an options expiry, and nearly $3 billion worth of contracts were settling on the Deribit exchange. For newcomers to cryptocurrency, options expiries can seem confusing and intimidating. This guide breaks down exactly what happened, why it matters, and what you should do about it.
The Basics
Crypto options are financial contracts that give traders the right, but not the obligation, to buy or sell Bitcoin or Ethereum at a predetermined price before a specific date. Think of them like a reservation at a restaurant. You pay a small deposit to hold a table, but you are not required to show up. If the restaurant becomes popular and tables are worth more, your reservation becomes valuable. If it empties out, you simply do not show up and lose only your deposit.
On February 13, approximately 38,000 Bitcoin option contracts worth roughly $2.5 billion and 215,000 Ethereum option contracts worth about $410 million expired on Deribit. Combined, this represented close to 9 percent of total open interest on the exchange. In plain terms, a massive amount of trading positions were settling at the same time.
Why It Matters
When options expire, traders must either close their positions, roll them forward to a future date, or let them settle. This creates a burst of trading activity that can push prices in either direction. On this particular expiry, Bitcoin was trading near $68,857, well below the max pain price of $74,000. Max pain is the price at which the most options contracts expire worthless, and it tends to act as a gravitational pull on price as expiry approaches.
For Ethereum, the situation was similar. ETH traded around $2,048, below its max pain level of $2,100. The put-call ratio for ETH options was 0.82, meaning slightly more traders were betting on further downside than upside. This protective positioning reflected broader market uncertainty, with January CPI data released the same day showing inflation at 2.4 percent year-over-year.
Getting Started Guide
You do not need to trade options to be affected by them. Even if you simply hold Bitcoin or Ethereum in a wallet, options expiries can impact the spot price of your holdings. Here is what to watch for. First, mark your calendar for monthly options expiry dates, which typically fall on the last Friday of each month on Deribit. Second, track the max pain price for BTC and ETH on Deribit’s dashboard. Third, monitor the put-call ratio, which tells you whether traders are generally bullish or bearish.
If you are a long-term holder, the best strategy during options expiries is usually to do nothing. Short-term volatility from expiry settling typically resolves within 24 to 48 hours. The previous week’s expiry of about $2.1 billion in BTC contracts only moved Bitcoin’s price by around 2 percent, showing that the impact is often limited and temporary.
Common Pitfalls
The biggest mistake beginners make during options expiries is panic selling during the volatility window. Prices may dip sharply for a few hours as positions unwind, only to recover once the settling completes. Another common error is assuming that max pain is a guaranteed price target. While large open interest can influence price, it is not a magnetic force that always pulls Bitcoin to a specific number.
Some traders also confuse options with futures. Futures contracts obligate both parties to complete the trade, while options give the holder a choice. This distinction matters because futures expiries can have a more direct impact on price since positions must be settled in the underlying asset.
Next Steps
To deepen your understanding of how derivatives affect the crypto market, explore Deribit’s educational resources on options trading. Follow on-chain analytics platforms that track open interest and funding rates. Consider setting price alerts around key levels during expiry dates so you can observe the market dynamics without being caught off guard. Most importantly, remember that volatility is a feature of crypto markets, not a bug. Options expiries are just one of many recurring events that create short-term price movements within the broader trend.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
38k btc contracts expiring on deribit and people wonder why price went haywire on feb 13. max pain was probably right around 68k
the eth side was smaller at 410m but still moved the needle. 215k contracts is a lot of gamma exposure for market makers to hedge
215k ETH contracts with $410M notional. dealers hedging all that gamma amplified the move in both directions on expiry day. classic options pin risk
dealers hedging gamma on 38k btc contracts plus 215k eth contracts in the same session. the cross-asset feedback loop is what makes quad expiries so violent
Sven T. max pain is useful but the gamma exposure around that strike is what actually moves price. dealers hedging delta creates the real momentum
max pain on deribit options is public info. the question is whether market makers can actually defend it when spot volume spikes
good explainer for newcomers. the restaurant reservation analogy actually works surprisingly well. most people overcomplicate options when explaining them
the restaurant analogy for options was actually clever. most explainers jump straight into Greeks and lose people in the first paragraph