Open interest in listed bitcoin options reached a record ahead of the quarterly expiry, with the largest concentrations sitting in strikes well above the current spot price.
Positioning matters because dealers who sold those calls must hedge dynamically. When they are short gamma, hedging flows follow price rather than lean against it, which tends to stretch intraday ranges.
Two volatility desks said retail structured products have been a steady supply of upside calls this quarter, while institutional accounts have preferred collars that cap both tails.
Implied volatility for one-month tenors remains below its two-year average, an unusual combination with record open interest and one that suggests the market is well hedged rather than complacent.
Traders expect open interest to reset sharply after settlement, and the shape of the following week's term structure will show whether hedges are being rolled or retired.
