Bitcoin Options Traders Bet on Upside as Short-Term Calls Surge

Bitcoin Options Traders Bet on Upside as Demand for Calls Surges

Bitcoin options traders are increasingly willing to pay a premium for the potential to profit from rising prices. At the one-week, 25-delta level, demand for call options has now surpassed demand for put options.

A call option offers a payoff if Bitcoin’s price increases, while a put option pays off if the price falls. The “25-delta” designation refers to options that are a moderate distance from the current market price. Traders analyze the implied volatility of 25-delta calls against their put counterparts. The difference between these volatilities is known as the risk reversal, or skew. A higher cost for puts indicates the market is pricing in protection against a downturn, whereas a higher cost for calls suggests traders are seeking exposure to potential price rallies.

The broader 25-delta skew turned positive on August 20, 2026, marking the first bullish sentiment in approximately 12 months. By mid-September 2026, call options constituted about 61.4% of the total Bitcoin options open interest, with puts making up 38.6%. Data from Derive indicated that put call open interest was around 305,530 BTC. In the 24-hour trading volume surrounding this initial bullish signal, call volume also outpaced put volume.

Shift in Near-Term Sentiment

In late September, a snapshot from Derivasys revealed that the one-week 25-delta risk reversal had moved 1.07 volatility points to -0.24. This reading shifted from clearly favoring downside protection to a more neutral stance within a single reporting period.

Long-Term Call Interest Builds

Further out on the options curve, traders have accumulated significant call open interest at strike prices of $80,000, $85,000, and $100,000 for December expirations.

Bitcoin spot was trading near $78,000 when the skew initially turned positive. In the subsequent weeks, the spot price consolidated within a range of $82,000 to $85,000. By early October, prices were hovering between $80,000 and $85,000, bolstered by robust inflows into Bitcoin Exchange-Traded Funds (ETFs).

Futures open interest stood at approximately $52.6 billion around the time of the skew flip. The substantial open interest at the $80,000 and $85,000 levels, close to current spot trading prices, suggests these levels could attract significant attention as expiration approaches. The hedging activities of dealers who have sold these calls can influence short-term price movements through their buying and selling around these popular strike prices.

Hedging Dynamics and Market Risks

When call options become more expensive relative to put options, the cost of acquiring upside exposure increases, while downside protection becomes comparatively cheaper. For investors seeking to hedge their positions, a market leaning towards calls can make downside protection more affordable than during periods dominated by put-heavy interest.

The Derivasys reading of -0.24 serves as a reminder that near-term skew was hovering around neutral rather than indicating strong bullish conviction. With futures open interest at approximately $52.6 billion, a crowded market could experience abrupt unwinding if macroeconomic conditions deteriorate.