$23.6 Billion Bitcoin Options Set to Expire Next Friday Amid Year-End Volatility

Quick Take

• A record $23.6 billion
  in notional Bitcoin options value is scheduled to expire on December 26, 2025.
• Call options show heavy clustering at $100,000 and $120,000 strikes, reflecting upside bets.
• Put options are concentrated near $85,000, indicating downside protection.
• The max pain price sits at $96,000, where option sellers would face minimal
  losses.

One of the largest Bitcoin options
expiries on record approaches as traders brace for potential volatility in
the final trading days of 2025.

Approximately $23.6
billion in Bitcoin options contracts are set to expire next Friday,
December 26, marking a significant derivatives event on platforms like
Deribit. This expiry comes amid Bitcoin’s consolidation phase, with the
cryptocurrency trading in a range that could see amplified moves due to
hedging activity.

Open interest data highlights distinct
positioning: bullish calls are heavily clustered around the
$100,000 and $120,000 strike prices, suggesting traders are
betting on a potential year-end rally or rebound. In contrast, puts
are concentrated near $85,000, pointing to increased demand for
downside protection in recent weeks.

The max pain level—the price
at which the majority of option holders would expire worthless, maximizing
losses for buyers—is estimated at $96,000. Prices often gravitate toward
this level as expiry nears due to market makers’ delta hedging, which can
suppress volatility or pin the spot price within key strike ranges.

Such large expiries have historically introduced short-term
price pressure or whipsaws, particularly in low-liquidity holiday periods.
Analysts note that post-expiry repositioning could clear gamma exposure,
potentially setting the stage for sharper moves into 2026.

While
the event underscores elevated leverage in the derivatives market, it also
reflects ongoing institutional participation in Bitcoin options for hedging
and speculative purposes.

Disclaimer: This article is for
informational purposes only and does not constitute advice of any kind.
Readers should conduct their own research before making any
decisions.