According to CoinDesk: Bitcoin (BTC) options tied to the upcoming U.S. elections have attracted significant attention, with traders locking in nearly $350 million in open interest. This reflects the growing interest in speculating how the November 4th elections might impact the digital assets market.
Key Highlights:
Rising Open Interest: As of now, the total notional open interest for these election expiry options stands at $345.83 million, according to Amberdata. These options began trading on Deribit a month ago and are set to expire four days after the election.
Bullish Sentiment: The distribution of open interest shows a strong bullish sentiment, with 67% of the total open interest coming from call options. These options offer unlimited upside potential, with a put-call ratio of less than 0.50, indicating that there are twice as many call options as put options.
Popular Strike Prices: The $80,000 strike price call option is the most popular, with an open interest of over $39 million. Traders are also positioning themselves for potential new record highs, with open interest concentrated in strike prices ranging from $70,000 to $140,000.
Hedging Strategies: Despite the bullish sentiment, there is still some level of hedging or downside protection, with $39 million locked in the $45,000 put option.
Wintermute, an algorithmic trading firm, noted that these election-dedicated contracts allow investors to capitalize on the heightened interest by speculating on the election's potential impact on the crypto markets. The presence of higher strike calls and lower strike puts suggests that market participants are preparing for a range of outcomes around the election period.