Headline: $40,000 Bitcoin Put Becomes One of the Biggest Bets Ahead of Feb. 27 Options Expiry As traders brace for the Feb. 27 options expiry, demand for downside protection in bitcoin has surged — with the $40,000 put emerging as one of the market’s largest positions. The contract, which pays out if BTC trades below $40,000 at expiry, now represents roughly $490 million in notional open interest, underscoring heavy appetite for deep tail-risk hedges after a recent, sharp pullback. Why it matters - Puts function as insurance: they reward holders if bitcoin falls below the strike price, cushioning portfolios against further downside. - BTC has swung as much as 50% lower from October highs and is trading near $66,000, a backdrop that has pushed more traders to buy protection while still keeping exposure to upside. What the options map looks like - Roughly $7.3 billion in bitcoin options notional value is set to expire at month-end, according to Deribit, a leading crypto options exchange. - The $40,000 put is the second-largest strike by open interest (~$490 million notional). - The $75,000 strike holds about $566 million and currently represents the “max pain” level — the price at which the largest number of options would expire worthless, minimizing payouts to option buyers. - Overall open interest shows more calls than puts: 63,547 call contracts versus 45,914 puts, giving a put-to-call ratio of 0.72. That indicates upside bets still dominate, even as sizable put concentrations highlight demand for protection. Bottom line Traders are positioned for a rebound but are hedging aggressively against another sharp leg down. The concentration of large put bets at lower strikes — especially the $40,000 level — makes the Feb. 27 expiry a key event to watch for short-term positioning and potential price moves. Read more AI-generated news on: undefined/news

#BTC #ETF