Bitcoin has set a new all-time high of over $121,000, and Deribit’s options market shows clear signs of hedging pressure and gamma-driven pinning at this level.
Traders are in a heavily constructed market in favor of upward exposure, as their positioning at delicate inflection points and Greek profiles are consistent. Current open interest and premium distribution show how these positions can relax and shape the next leg at Bitcoin rallies.
Open interest in BTC options has steadily recovered from DIP in early June, rising from 335,000 BTC to 394,000 BTC as of July 14th. The total concept value returned to $46.87 billion on a dollar basis, with DeRibit accounting for 81%. The price rise of BTC over the same period contributes to the conceptual rise, but the surge in total contracts suggests a new speculative influx, not merely marking market-to-market adjustments.
DELIBIT data shows that 202,903 BTC equivalent call options are currently open compared to PUTS’s 117,580 BTC. The number of contracts in raw numbers already reveals a clear slope towards upward exposure, but the disparity becomes more pronounced when measured financially. The expected call is $24.86 billion and the market value is $1.92 billion, while the Puts’ total conceptual value is $144.1 billion and the market value is just $106.39 million. This means that the concept of Puts is relatively high, indicating substantial volume negative coverage, but the actual premium invested in these positions is minimal.
A conceptual value, when exercised, refers to the overall exposure of the option when BTC amount is multiplied by the strike price. Market value, on the other hand, reflects the current price of these options or the costs paid to acquire them. In options trading, conceptual value scales, while market value captures emotions and risk appetite.
The harsh difference between these two values of put indicates the lack of convictions behind downside protection. Most existing put positions are much less money-free and are layered over strikes of under $100,000. As a result, their premiums are deeply discounted and cheaper to hold, but relatively ineffective as a real hedge.
Traders may deploy as low-cost insurance or as part of a broader strategy, such as collars and spreads, rather than making bets that are directional to decline. This contrasts with Callside, where higher premiums, such as $115,000, $120,000 and $130,000, are concentrated on Money at at at at out of money strikes.
Optional strike cluster reveals focal zones
An important feature of the current option setup is the clustering of open interest regarding a particular strike price. The most concentrated levels of activity are:
- $100,000: 9,620 puts and 6,050 calls ($19.2 billion concept)
- $115,000: 15,080 phones and 2,530 puts ($2.16 billion concept)
- $120,000: 20,160 phones and 951 puts ($25.9 billion concept)
- $130,000: 16,150 phones and 174 puts ($200 billion concept)
- $140,000: 18,030 phones and 265 puts ($2.24 billion concept)
These numbers show a strong upward ladder in call positioning, with the $120,000 strike currently serving as a critical inflection. With this level of spot trading, the market is effectively pushing the busiest callwall. The low number of puts on these upper strikes indicates that there is little interest in hedging against negative inversions.
Options Greeks provide further insight into why BTC is close to $121,000. The gamma is just above $123,000 and forms a classic bell curve around current spot prices. The short gamma of dealers in this area should be adjusted frequently for hedges, purchased as BTC rises and sold as it falls. This keeps the price within the gamma vertex range while suppressing volatility. If the spot breaks significantly above or below, the inhibitory effect may decline and volatility may revive.
Delta shows a sharp transition between -0.25 and +0.45, close to $121,000 and $123,000. This means that small movements in the spot can flip dealer hedges from net shorts to net longs, potentially causing quick purchases from desks caught offside. This indicates that the $121,000 to $125,000 range is psychologically and structurally important.
Theta is the steepest near current range, suggesting that time decay is the hardest working against option holders in places where the most speculative capital is concentrated. The Vega also peaked at $123,000, indicating that volatility sensitivity is maximized there.
The current structure of the options market suggests that traders are net short phones over the main strike price, especially $120,000. Bitcoin is above these levels, so options traders can be forced to delta hedge and increase the price by purchasing BTC in spots or futures. This is a relatively common short gamma feedback loop and is perhaps one of the greatest bitcoin-keeping forces of all time.
If BTC holds around $121,000, the gamma pinned should hold tight in price ranges and could remain volatility suppressed until the July 15th expiration date. A breakout over $125,000 could cause an offensive dealer hedge and narrow it down to $130,000.
As the call is dominant, this could accelerate upward movement, which limits friction. However, a reversal below $118,000 will overturn the delta and reduce hedging demand. Given the thin put structure, inversion can quickly gather speeds if long calls are abandoned.
The $123K post-option gamma pin keeps Bitcoin in a tight range after the first new ATH appears in Cryptoslate.
