- Covered-call options rose as cash-and-carry futures returns fell, attracting yield-seeking funds.
- Aggregate Bitcoin options open interest reached $49 billion in December 2025, up from $39 billion a year earlier.
- IBIT options open interest climbed to about $40 billion from $12 billion in late 2024, while the put-to-call ratio remained below 60%.
- Implied volatility fell to around 45% from 57% in late 2024, and IBIT put skew moved from a 2% discount to a 5% premium.
- Data suggest covered-call selling has not become a structural price ceiling, as many market participants still buy protection and sellers benefit if prices rise.
As Bitcoin moved into a downtrend in November 2025, institutional and corporate flows failed to push prices above prior highs, and traders shifted into options-based yield strategies. Funds moved from the cash-and-carry futures trade into covered calls on products such as the spot ETF IBIT, seeking higher annualized returns after futures premia collapsed. This rotation helped open interest in Bitcoin options climb overall.
Aggregate Bitcoin options open interest rose to $49 billion in December 2025 from $39 billion in December 2024. On the IBIT front, open interest expanded to about $40 billion from $12 billion in late 2024. Meanwhile, the put-to-call ratio stayed below 60%, indicating that buyers of upside exposure still exist alongside yield-focused sellers.
Futures premium data from laevitas.ch show that two-month futures annualized premia fell from steady 10–15% in late 2024 to below 10% by February 2025 and under 5% by November. Covered-call strategies offered roughly 12–18% annualized yields, prompting the shift. Implied volatility also dropped to about 45% or lower from 57% in late 2024, reducing option sellers’ income.
Skew moved defensively: IBIT puts traded at a 2% discount in late 2024 and moved to a 5% premium, while demand for puts increased. Critics argue that selling calls can create a sell wall, but the stable put-to-call balance and rising put demand indicate hedging and bullish positioning coexist. Lower volatility likewise weakens the incentive for broadly “suppressive” call selling, and many sellers retain upside interest if prices rise.
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