Bitcoin Traders Aim for Long-Term BTC Accumulation by Selling Put Options
Deribit's Lin Chen told CoinDesk that there has been a noticeable increase in the selling of cash-backed put options using stablecoins.
Author: Omkar Godbole | Edited by: Parikshit Mishra Updated: Apr 24, 2025 3:35 PM Published: Apr 24, 2025 8:03 AM
What is important to know:
- Bitcoin traders are increasingly selling BTC put options, indicating positive price expectations.
- The total delta of BTC options and related ETFs has reached $9 billion, indicating high sensitivity to changes in Bitcoin prices.
Would you offer insurance if you thought there was a low chance of a claim? Chances are you would, and you would pocket the premium without a second thought. Bitcoin (BTC) traders are doing the same in the BTC options market traded on Deribit, indicating that they expect prices to rise.
Recently, there has been an increase in the number of traders selling (writing) put options on BTC, which can be seen as providing insurance against price declines in exchange for a small upfront premium.
They implement this strategy by securing cash for themselves by keeping enough in stablecoins to ensure that they can buy BTC if the market falls and if the put buyer decides to exercise their right to sell BTC at a predetermined higher price.
This strategy allows traders to earn premiums (paid by put buyers) while potentially accumulating Bitcoin if the options are exercised. In other words, it is a reflection of long-term bullish sentiment.
“We are seeing a significant increase in cash-backed put option selling using stablecoins, another sign of a more mature, long-term approach to BTC accumulation and continued bullish sentiment,” Deribit’s head of business development in Asia, Lin Chen, told CoinDesk.
Chen noted that BTC holders are also selling higher strike call options to earn premiums and generate additional profits on top of their coin holdings, putting pressure on Deribit’s DVOL index, which measures BTC’s 30-day implied volatility. The index has fallen from 63 to 48 since BTC’s panic sell-off on April 7, when the price reached $75,000, according to charting platform TradingView.
“We see investors maintaining long-term bullish sentiment towards BTC, especially among cryptocurrency ‘holders’ willing to hold on to it through market cycles,” Chen added.
Bitcoin's price has risen to more than $92,000 since falling to $75,000 earlier this month, presumably on safe-haven demand for the cryptocurrency and renewed institutional adoption.
According to Amberdata, the sharp price recovery has resulted in a risk dump on BTC options, indicating a shift in call options across time frames. Over the past two days, traders have been actively buying $95,000, $100,000, and $135,000 strike calls via OTC technology platform Paradigm. At the time of writing, the $100,000 strike call is the most popular option play on Deribit, with over $1.6 billion in notional open interest.
$9 billion in delta
The importance of tracking options market flows can be explained by the fact that, according to data tracked by Volmex, the cumulative delta
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