Bitcoin Options Traders Are Betting Big on ’Uptober’ - Here’s Their Bullish Strategy

Traders are loading up on call options as October approaches, positioning for what crypto veterans call 'Uptober' - the historically bullish tenth month.

The Options Frenzy Explained

Derivatives markets show sophisticated players accumulating out-of-the-money calls, betting Bitcoin will smash through resistance levels. The smart money isn't just hoping for gains - they're paying premiums to leverage them.

Market Mechanics at Play

Open interest spikes reveal concentrated buying at strike prices well above current levels. This isn't retail FOMO - it's institutional-scale positioning that often precedes major moves.

The Contrarian Warning

Of course, Wall Street veterans might call this another case of 'dumb money' front-running itself - because nothing says sophisticated investing like naming seasonal patterns after expected price direction.

Whether the October effect delivers or becomes another trader folktale, the options market already placed its vote: bulls are charging.

Crypto News of the Day: Traders Are Betting on Higher Prices in October

Crypto traders are buzzing about Uptober, the nickname given to October for its history of strong bitcoin rallies.

However, before the month even begins, options markets are sending mixed signals after a record expiry, with heavy bets on higher prices, and the possibility of a sudden breakout once contracts roll off.

As BeInCrypto reported, over $16 billion worth of Bitcoin options contracts expired today on Deribit, one of the largest expiries ever.

🚨 Options Expiry Alert 🚨

At 08:00 UTC tomorrow, over $22.3B in crypto options expire on Deribit; one of the biggest quarter-end expiries. 🔥$BTC: Notional: $17.06B | Put/Call: 0.76 | Max Pain: $110K$ETH: Notional: $5.20B | Put/Call: 0.80 | Max Pain: $3,800

Q3’s largest… pic.twitter.com/FDT1tWomYH

Crypto options are financial contracts that allow traders to bet on Bitcoin’s future price without directly buying or selling it.

When so many contracts expire at once, it can temporarily trap Bitcoin’s price NEAR the most popular betting levels, in this case between $115,000 and $120,000. Traders call this effect “pinning,” and it often keeps volatility muted until after expiry.

Once the contracts settle, though, that pin disappears. Depending on whether more traders were betting on upside or downside, the market can see a sharp MOVE in the following days.

This is How Bitcoin Traders are Positioning for Uptober

Bitfinex analysts told BeInCrypto that many traders are loading up on call options especially in the $115,000 to $125,000 range.

These bets pay off if Bitcoin climbs higher, suggesting confidence that the pioneer crypto could rally deeper into Uptober.

However, there’s a caveat. Market makers and dealers, who sell these contracts, hedge their risk by trading against the market. This tug-of-war often slows down big moves until expiry clears the slate.

Nicolai Sondergaard, a research analyst at Nansen, said institutions are also preparing for upside.

“Retail traders are making balanced short-term bets, but institutions are leaning bullish with structured trades that benefit if Bitcoin rises,” Sondergaard said in a statement to BeInCrypto.

He pointed to a put-to-call ratio of 0.65, which means there are significantly more bullish bets than bearish ones.

September has lived up to its reputation as a choppy month for crypto. However, as October approaches, the stage is set for volatility to return.

Historically, #Bitcoin finds a low in September of the post-halving year, and then bounces off of it into the market cycle top that occurs in Q4. pic.twitter.com/CVbcPOUojM

Key signals to watch in the coming days include ETF flows, perpetual funding rates, and whether options positions reset at higher levels.

Chart of the Day

Byte-Sized Alpha

Here’s a summary of more US crypto news to follow today:

• Record $21 billion Bitcoin and Ethereum options expiry tests market nerves.
• Bear market or bear trap? Analysts divided on crypto’s latest downturn.
• Glassnode flags market exhaustion as ‘Uptober’ approaches for Bitcoin.
• Aster resolves XPL perp glitch with refunds as growth momentum accelerates.
• Bitcoin’s hidden risk — DAT stock meltdown may trigger forced selling.
• Hyperliquid-based project faces $3.6 million controversy amid rug pull fears.
• Bitcoin faces double trouble: Whale slowdown and futures selloffs threaten drop to $105,000.

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