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Bitcoin options show heavy call spread positions into late July

Deribit data shows the largest call concentrations at $70,000 and $72,000 for July 31, with the spread expiring two days after the next Federal Reserve policy decision.

Reported · Written up by our desk · Market Structure

Bitcoin options positioning on Deribit is concentrated around the $70,000 and $72,000 strikes for the July 31 expiry, with more than 20,000 call contracts open at each level, according to Deribit’s July 31 options board data cited by CryptoSlate. The exchange data shows roughly 27,000 contracts at the $70,000 strike and about 21,000 at $72,000, with Bitcoin trading near $64,289 at the time of the report, putting the $70,000 level about 8.9% above spot. CryptoSlate also notes that the reported structure involves a large block that bought 20,000 July 31 calls at $70,000 and sold the same number of calls at $72,000. That construction corresponds to a bull call spread, where the $70,000 calls provide upside exposure above the lower strike, and the simultaneous sale of $72,000 calls reduces the cost while capping further gains. CryptoSlate estimates the spread’s aggregate gross notional at roughly $2.5 billion at prevailing prices, while noting that premium paid, capital committed, and net exposure are separate measures. CryptoSlate adds that the options expire two days after the Federal Reserve’s next policy decision, and that a separate probability snapshot assigns a 4.1% chance of Bitcoin touching $72,500 during the month and 14.5% for touching $70,000, with other touch thresholds also tracked separately.

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