$20K Bitcoin Strike Gains Attention as Deep OTM Options Attract Traders

Deep OTM Bitcoin Options Signal Bullish Volatility Bets, Not Bearish Price Positions

Traders are piling into deep out-of-the-money (OTM) bitcoin options for longer-dated expiries, reflecting a focus on volatility rather than directional bets.

On Deribit, the $20,000 strike put for June 2026 ranks as the second most popular option, with notional open interest exceeding $191 million. Other active OTM strikes for the same expiry include $30,000, $40,000, $60,000, and $75,000 puts. These contracts, far below the current BTC price near $90,500, are cheaper than options closer to the spot.

While deep OTM puts often suggest bearish hedging, current activity tells a different story. Trades in high-strike calls above $200,000 indicate that professional traders are using these contracts to position for extreme price swings and volatility, not directional moves. “These are essentially cheap lottery tickets on a potential volatility explosion over the next six months,” said Sidrah Fariq, Deribit’s Global Head of Retail.

Fariq explained that these “deep wing” trades help institutions manage tail risk. If BTC moves sharply in either direction, holders of both OTM puts and calls could see asymmetric payoffs, but flat markets would erode option value quickly.

Options allow traders to buy (calls) or sell (puts) at predetermined prices and are increasingly used to profit from volatility, time decay, and complex risk strategies. Despite this, BTC puts still trade at a premium to calls across tenors, partly due to persistent call overwriting strategies boosting yield on spot holdings.