Bitcoin The options market has become noticeably less defensive over the past month, undoing the downside protection that traders built up in June just as the Federal Reserve prepares to meet.
The put/call ratio on open interest, which measures how much of the market is positioned in puts, contracts that pay off when the price falls, versus call options, which pay off when it rises, has fallen to about 0.52 from around 0.76 in late June, according to Glassnode.
Calls are gaining share, the pattern of operators moving away from coverage rather than increasing it. Recently, large traders have been accumulating $70,000 strike options and bullish call spreads, indicating expectations of upside in the spot price.
The 25 delta bias, the premium traders pay for downside protection relative to equivalent upside exposure, has fallen to around 4% within a week, while three- and six-month contracts remain between 11% and 12%. That indicates merchants are still paying insurance against something going wrong later this year, but they largely stopped paying it this week.
