Crypto traders are pouring hundreds of millions into bitcoin (BTC) options tied to the upcoming U.S. elections, with nearly $350 million in open interest reflecting a strong bullish sentiment. These “election expiry options,” which settle four days after the Nov. 4 elections, began trading on Deribit just a month ago. According to Amberdata, the notional open interest or the total dollar value of active contracts currently stands at $345.83 million.
Most of the interest is concentrated in call options, which represent 67% of the total, while the remaining 33% are put options. The resulting put-call ratio of under 0.50 indicates that there are twice as many call options as puts, signaling optimism that the election results will drive bitcoin prices higher.
Wintermute, an algorithmic trading firm, noted, “These election-dedicated contracts allow investors to capitalize on the increased interest by speculating on how the election might affect the crypto markets in a targeted way. The current put-call ratio of 0.50 indicates a bullish sentiment, with twice as many calls traded as puts.”
Among the call options, the $80,000 strike price is the most popular, with over $39 million in open interest. Generally, traders are betting on higher strike prices, ranging from $70,000 to $140,000, suggesting a belief that bitcoin could reach new record highs as the election approaches. On the downside, $39 million is locked in the $45,000 put option, showing that some participants are hedging against potential drops.
Wintermute added, “The concentration of call options’ open interest at strikes around $80K and $100K suggests that market participants are positioning for potential upside in bitcoin, while the presence of puts at lower strike price of $45,000 indicates some level of hedging or downside protection.”
As interest in election-linked bitcoin options grows, traders are closely watching the political landscape to gauge its impact on the crypto market.
