Crypto Options Weekly: The Smart Money is Positioning for a $110k Christmas - Are You?

The Flow

Sentiment is decisively Bullish. Yesterday alone saw nearly 2x more buying volume in Calls than Puts. We witnessed “Whale” entities stepping in to buy the $94,000 Strike Calls for mid-December, a clear bet on immediate upside momentum.

Key Levels to Watch

The Open Interest “Heatmap” reveals the psychological battlegrounds for the week:

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  Resistance (The Magnet): $110,000.
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  There is a massive “Call Wall” at the $110k strike, with over $80 Million in Open Interest sitting there. In options theory, large call walls often act as magnets. Market makers who sold these calls may be forced to buy spot BTC to hedge as price approaches, potentially fueling a “gamma squeeze” that accelerates the move upward.
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  Support (The Floor): $108,000.
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  Interestingly, the nearest major Put support is high—at $108k. This tight range between $108k support and $110k resistance suggests traders expect a breakout above these levels, or they are using $108k puts to lock in profits on entries from lower levels.

Strategy Insight: If you are long BTC, the data suggests holding for the $110k test. If you are cautious, consider buying Put Spreads at the $108k level to protect against a sudden rejection, financing the trade by selling further out-of-the-money calls (a strategy known as a “Collar”).

Ethereum ($ETH): The $3,500 Pivot

ETH is currently coiled like a spring. The data shows a unique convergence: $3,500 is both the largest Call Strike and the largest Put Strike.

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  Interpretation: This is a “Straddle” zone. The market is undecided on direction but expects volatility to explode away from $3,500. A move away from this level could be violent.
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  Outlook: Watch for a daily close above $3,550 to trigger a run to $4,000.

The “Contrarian” Hedge: Gold ($PAXG)

Here is a true Alpha signal. While crypto is pumping, the most bearish sentiment on the platform is found in PAXG (Gold).

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  The Signal: PAXG has a Put/Call Ratio of 14.6. For every $1 bet on Gold going up, nearly $15 is betting on it going down or hedging long positions.
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  Why? This is likely a “Risk-On” signal. Capital is rotating out of defensive assets (Gold) and into high-beta crypto assets. When Gold dumps and Crypto pumps, it confirms a high-conviction liquidity cycle.

The Power of Leverage without Liquidation Risk

When you buy a Call Option, you get unlimited upside exposure (just like holding the coin), but your risk is capped strictly to the premium you paid. Unlike futures, you cannot be liquidated on a long option position if the price wicks down temporarily.

Hedging: Sleep Soundly

Are you sitting on massive gains from this cycle? You don’t have to sell and trigger a tax event to protect your profit.

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  The Move: Buy a Put Option.
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  The Result: If the market crashes 20%, your Put Option gains value, offsetting the loss in your portfolio. It’s like homeowners insurance for your crypto bags.

PowerTrade Flexibility

At PowerTrade, we specialize in Portfolio Margin and capital-efficient structures. This means we calculate your margin requirement based on your total risk, not just individual positions. This frees up collateral, allowing you to run more sophisticated strategies (like Iron Condors or calendars) that generate yield even if the market goes sideways.