The bitcoin options market has grown significantly: aggregate open interest reached $49 billion in December 2025 compared to $39 billion in December 2024. A major contributor to this growth was IBIT, whose open interest rose to $40 billion from $12 billion at the end of 2024. These shifts have brought the covered call strategy into focus, but market data reveals a mixed picture rather than a clear-cut "cap" on the price.
Growth of the Bitcoin Options Market
The increase in total open interest reflects rising activity and institutional interest across multiple market segments. Notably, options linked to BlackRock iShares spot Bitcoin (IBIT) saw their open interest jump to $40 billion, drawing attention to option selling structures. For a detailed comparison with other derivatives data, see the December 2025 data and positioning.
Covered Call Strategy and Its Impact
A covered call involves a bitcoin holder selling a call option, earning a premium in exchange for capping potential position gains. Critics argue that mass call selling can create persistent sell levels and "cap" the price, as market makers hedge their spot positions. At the same time, this strategy generates income for sellers; a detailed analysis of how covered options influence price pressure is available in the article on how major players cap the BTC price.
Market Data Analysis
Despite growing option volumes, the put-to-call ratio remained stable below 60%, indicating call sellers do not fully dominate buyers. Meanwhile, IBIT put option premiums shifted from a 2% discount at the end of 2024 to a 5% premium, reflecting increased demand for protection. Implied volatility declined to 45% or lower since May, down from 57% at the end of 2024, reducing option sellers’ returns all else equal.
Shift from Cash-and-Carry to Options
In late 2024 and 2025, the cash-and-carry strategy lost appeal, with many funds moving toward option income seeking higher yields. This transition increased the share of option strategies in bitcoin income generation. For volume and expiration date context, refer to the article on option expiration prices discussing the large amount of contracts expiring by year-end: $30.3 billion expiring by year-end.
Why This Matters
If you’re a miner with several to hundreds of rigs, the growth of the options market affects liquidity and market maker behavior, even if it doesn’t directly alter your core operation. Understanding that IBIT and covered options have increased market share helps assess how sales and hedging distribute on the spot market. Meanwhile, a stable put-to-call ratio and falling volatility indicate the options market currently blends income and protective strategies rather than acting as the sole factor "holding" the price down.
What to Do?
For miners with 1–1000 rigs, it’s important to stay agile in risk management and consider options as a liquidity factor. Monitoring key indicators—open interest dynamics, put-to-call ratio, and implied volatility—reveals shifts in protection demand and income. Adjust coin sale schedules accordingly, noting that option sellers may increase pressure near popular strikes but are also incentivized for price growth to their targets.
Brief Practical Steps
- Track options open interest and IBIT OI changes to understand position concentration.
- Consider the put-to-call ratio when planning large sales: below 60% indicates mixed strategies, not one-sided selling.
- Watch implied volatility—when it falls, seller premiums decrease and option selling income becomes less attractive.