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Bitcoin’s $40,000 put becomes second-largest
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Bitcoin’s $40,000 put becomes second-largest
Bitcoin’s $40,000 put becomes second-largest options bet ahead of February expiry next week
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Bitcoin’s $40,000 put becomes second-largest options bet ahead of February expiry next week
Heavy positioning at lower strikes signals rising demand for downside protection for bitcoin.
By James Van Straten|Edited by Sam Reynolds
Feb 19, 2026, 6:48 a.m.
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Open Interest by Strike Price (Deribit)
What to know:
- The $40,000 put option is the second largest strike by open interest, with about $490 million in notional value, highlighting strong demand for crash protection into the Feb. 27 expiry.
- Roughly $566 million is positioned at the $75,000 strike, the max pain level.
- Calls still outnumber puts overall, showing traders are balancing rebound exposure with downside hedges.
The $40,000 put option has emerged as one of the most significant positions in bitcoin’s market ahead of the Feb. 27 expiry, highlighting strong demand for downside protection after a bruising selloff.
Options are derivatives that give holders the right, but not the obligation, to buy or sell bitcoin at a predetermined price before expiry. Put options act as insurance against price declines, paying out if BTC falls below a set strike.
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The $40,000 put is the second-largest strike by open interest, with roughly $490 million in notional value tied to that level, underscoring appetite for deep tail-risk hedges. BTC has declined by up to 50% from its October highs and is now trading around $66,000, reshaping positioning across the board as traders hedge against further losses.
Data from Deribit, the Dubai-based exchange owned by Coinbase, shows that roughly $7.3 billion in bitcoin options notional value is set to expire at the end of the month.
Meanwhile, $566 million sits at the $75,000 strike, which also represents the max pain level. Max pain refers to the price at which the greatest number of options expire worthless, minimizing payouts to buyers. With the spot price trading below $75,000, a move higher into expiry could reduce losses for call sellers.
Although calls outweigh puts overall, with 63,547 call contracts versus 45,914 puts, positioning is not purely bullish. The put-to-call ratio of 0.72 indicates that upside bets still dominate, but the concentration of sizeable put open interest at lower strikes highlights clear demand for downside insurance.
Traders retain exposure to a rebound, but are simultaneously hedging against the risk of another sharp leg lower.
DeribitBitcoin NewsBitcoin Options
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